Generalizing the Stolper-Samuelson Theorem: A Tale of Two Matrices

17 Pages Posted: 2 Jun 2004

See all articles by Peter Lloyd

Peter Lloyd

University of Melbourne - Department of Economics

Abstract

Past attempts to generalize the Stolper-Samuelson theorem have used a matrix of real income terms which are sufficient but not necessary to define a change in utility. One can define a second matrix of terms which are necessary and sufficient for a change in indirect utility. Using this matrix, the paper extends the Stolper-Samuelson theorem to a model of any dimensions and to households which have diversified ownership of factors. The theorem states that there is a positive and a negative element in every row and every column of the matrix showing household responses to changes in goods prices.

Suggested Citation

Lloyd, Peter John, Generalizing the Stolper-Samuelson Theorem: A Tale of Two Matrices. Available at SSRN: https://ssrn.com/abstract=533493

Peter John Lloyd (Contact Author)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://melbecon.unimelb.edu.au/staffprofile/plloyd/home.html

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
15
Abstract Views
877
PlumX Metrics