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A classroom experiment on the specific factors model

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  • Lin, Yu-Hsuan

Abstract

This paper proposes a classroom experiment to illustrate the specific-factors model. In it, students act as decision-makers in an economy comprising two goods and three factors, and each is asked to maximize the value of marginal production by allocating his/her labor force between the two sectors. Through trading products, all players work as a whole economy in pursuit of higher welfare. From their individual perspectives, they can observe the impacts of relative price changes and international labor mobility on productivity and income distribution. The group perspective, meanwhile, reveals the gains arising from trade and welfare. Together with discussion of theoretical predictions, experimental results and case studies, this classroom experiment could foster better learner understanding of the specific-factors model, both individually and collectively.

Suggested Citation

  • Lin, Yu-Hsuan, 2021. "A classroom experiment on the specific factors model," International Review of Economics Education, Elsevier, vol. 37(C).
    • Handle: RePEc:eee:ireced:v:37:y:2021:i:c:s1477388021000062
    DOI: 10.1016/j.iree.2021.100214
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    Cited by:

    1. John Gilbert & Onur A. Koska & Reza Oladi, 2023. "Building and using nonlinear simulations in Excel with an application to the specific factors model," Southern Economic Journal, John Wiley & Sons, vol. 89(4), pages 1242-1265, April.
    2. John Gilbert & Onur A. Koska & Reza Oladi, 2022. "Building and Using Nonlinear Excel Simulations: An Application to the Specific Factors Model," Working Papers in Economics 22/08, University of Canterbury, Department of Economics and Finance.

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    More about this item

    Keywords

    Specific-factors model; Experiment design; International trade; Classroom experiment; International labor mobility;
    All these keywords.

    JEL classification:

    • A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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