
Accession Number : AD0646021
Title : FACTOR PROPORTIONS AND RELATIVE PRICE UNDER C.E.S. PRODUCTION FUNCTIONS: AN EMPIRICAL STUDY OF JAPANESEU.S. COMPARATIVE ADVANTAGE.
Descriptive Note : Technical rept.,
Corporate Author : STANFORD UNIV CALIF INST FOR MATHEMATICAL STUDIES IN THE SOCIAL SCIENCES
Personal Author(s) : Bickel,Gary W.
Report Date : 19 DEC 1966
Pagination or Media Count : 239
Abstract : The study is an empirical testing of the relativefactorproportions theory of comparative advantage ('HeckscherOhlin theorem'), and of the major implications for international relativeprice determination of constantelasticityofsubstitution (CES) production functions. It utilizes detailed Japanese and U.S. 1951 marketprice data and inputoutput materials for twocountry comparison of factorinput patterns and relative commodity prices. Principal method employed is linear regression of composite weightedaverage JapaneseU.S. price ratios on total (direct and indirect) capitallabor proportions, organized by 29sector industry classification, and variously measured. Extensive detailed factoruse data are presented, as well as the Leontiefinverse of 'domesticproduct technological flow matrix' for each economy. An 'equivalentefficiency relative price' (or 'relative joint factorcost index') concept and data are developed, depending solely on the shape of each industry's CES production function and relative total factor proportions. Other data include: relative prices and costs of rawmaterial inputs into manufacturing, direct and total input coefficients for imports used in industry, factor and commodity 'shadowprice' estimates from linear regression of output levels on weighted factorinput volumes, and actual 1951 JapaneseU.S. trade flows. (Author)
Descriptors : (*INDUSTRIAL PRODUCTION, COSTS), FACTOR ANALYSIS, LABOR, JAPAN, UNITED STATES, EFFICIENCY
Subject Categories : Economics and Cost Analysis
Distribution Statement : APPROVED FOR PUBLIC RELEASE