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AA00260492-19970001-0043.pdf
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Title |
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INTERNATIONAL DIFFERENCES IN PRODUCTION FUNCTIONS AND FACTOR PRICE EQUALIZATION
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THOMPSON, Henry
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Economics Department Auburn University
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Keio Economic Society, Keio University
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1997
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Keio economic studies
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34
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1
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1997
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43
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54
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Abstract |
This is a note on the implication of relaxing the assumption of international trade theory that production functions are identical across countries. A Euclidean measure of the international difference between exponential production functions is used to examine properties of the mapping to implied international differences in factor prices across freely trading countries. For anticipated differences in estimated production functions, factor prices would be similar across countries if factor price equalization would otherwise hold.
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