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Distortions in the Factor Market.Models and Realities

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  • GUNNAR FLIoYSTAD

    (Business Administration, Bergen (Norway).)

Abstract

This paper confronts the theory of distortions in the factor market with empirical evidence. It is generally concluded that there would not be much to gain in terms of increased production for the economy as a whole from a technically efficient reallocation of labour and capital between industries. However, distortions in the factor market may be of importance in some sectors of the economy which means that imperfections in the factor market should be of concern for economic policy.

Suggested Citation

  • GUNNAR FLIoYSTAD, 1982. "Distortions in the Factor Market.Models and Realities," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 21(1), pages 19-48.
    • Handle: RePEc:pid:journl:v:21:y:1982:i:1:p:19-48
    as

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    File URL: http://www.pide.org.pk/pdf/PDR/1982/Volume1/19-48.pdf
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    References listed on IDEAS

    as
    1. H. Myint, 1963. "Infant Industry Arguments for Assistance to Industries in the Setting of Dynamic Trade Theory," International Economic Association Series, in: Roy Harrod & Douglas Hague (ed.), International Trade Theory in a Developing World, chapter 0, pages 173-193, Palgrave Macmillan.
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    5. Bhagwati, Jagdish N & Ramaswami, V K & Srinivasan, T N, 1969. "Domestic Distortions, Tariffs, and the Theory of Optimum Subsidy: Some Further Results," Journal of Political Economy, University of Chicago Press, vol. 77(6), pages 1005-1010, Nov./Dec..
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    7. repec:bla:ecorec:v:47:y:1971:i:120:p:518-30 is not listed on IDEAS
    8. Jones, Ronald W, 1971. "Distortions in Factor Markets and the General Equilibrium Model of Production," Journal of Political Economy, University of Chicago Press, vol. 79(3), pages 437-459, May-June.
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    11. Magee, Stephen P, 1973. "Factor Market Distortions, Production, and Trade: A Survey," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 1-43, March.
    12. Anand, Sudhir & Joshi, Vijay, 1979. "Domestic Distortions, Income Distribution and the Theory of Optimum Subsidy," Economic Journal, Royal Economic Society, vol. 89(354), pages 336-352, June.
    Full references (including those not matched with items on IDEAS)

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