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Generalized Findlay-Grubert Theorem

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  • Jitendralal Borkakoti

Abstract

This generalization allows the relative price to vary and explicitly considers Hicks-, Harrod-, and Solow-neutrality. Under certain conditions, the Harrod-neutral and the Solow-neutral shifts are equivalent to the Hicks factor-saving shift. If Hicks-Harrod-Solow neutral or the Hicks factor-saving improvement occurs in one of the two sectors, then the relative price of that good falls, and the level of output of that good increases. However, the level of output of the other good remains constant if Hicks-Harrod-Solow-neutral progress occurs, and decreases or increases according to whether the Hicks x-saving or x-using technological progress occurs in the x-intensive sector.

Suggested Citation

  • Jitendralal Borkakoti, 1980. "Generalized Findlay-Grubert Theorem," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(4), pages 587-611.
    • Handle: RePEc:oup:qjecon:v:95:y:1980:i:4:p:587-611.
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    File URL: http://hdl.handle.net/10.2307/1885483
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    Cited by:

    1. Chul Chung, 2007. "Technological Progress, Terms of Trade, and Monopolistic Competition," International Economic Journal, Taylor & Francis Journals, vol. 21(1), pages 61-70.

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