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NON‐HOMOTHETIC COMMUNITY PREFERENCES AND THE N‐FACTOR THEORY OF INTERNATIONAL TRADE
Author(s) -
Horiba Y.
Publication year - 1974
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.1974.tb00344.x
Subject(s) - homothetic transformation , economics , commodity , context (archaeology) , consumption (sociology) , production (economics) , mathematical economics , microeconomics , unitary state , set (abstract data type) , mathematics , market economy , computer science , paleontology , social science , programming language , geometry , sociology , political science , law , biology
A bstract Horiba, Y.,‘Non‐Homothetic Community Preferences and the N‐Factor Theory of International Trace'. Andress: Department of Economics, Tulane University, New Orleans, La. 70118 U.S.A. The Heckscher‐Ohlin theorem is formulated in this paper in terms of the factoral composition of trade under the general structure of demand admitting non‐unitary income elasticities. The relationship that exists among the factor proportions of production, consumption, and trade under non‐homothetic demand is clarified in the two‐factor, many‐commodity context. The analysis is then extended to the many‐factor endowments by means of a set of appropriately transformed production coefficients that are weighted by the proportions of commodity consumption on the demand side. A set of conditions under which the theorem continues to hold in general is investigated.