Thanks for comments and suggestions go to Farhad Rassekh, Charles Sawyer, Roy Ruffin, Ron Jones, Manoj Atolia, Santanu Chaterjee and Svetlana Demidova.
Stolper–Samuelson Time Series: Long-Term US Wage Adjustment
Article first published online: 22 JAN 2013
© 2013 Blackwell Publishing Ltd
Review of Development Economics
Volume 17, Issue 1, pages 148–155, February 2013
How to Cite
Thompson, H. (2013), Stolper–Samuelson Time Series: Long-Term US Wage Adjustment. Review of Development Economics, 17: 148–155. doi: 10.1111/rode.12021
- Issue published online: 22 JAN 2013
- Article first published online: 22 JAN 2013
Factor prices adjust to product prices in the Stolper–Samuelson theorem of the factor proportions model. The present paper estimates adjustment in the average US wage to changes in prices of manufactures and services with yearly data from 1949 to 2006. Difference equation analysis is based directly on the comparative static factor proportions model. Factors of production are fixed capital assets and the labor force. Results have implications for theory and policy.