IDEAS home Printed from https://ideas.repec.org/p/abn/wpaper/auwp2010-06.html
   My bibliography  Save this paper

Energy Substitution, Production, and Trade in the US

Author

Listed:
  • Henry Thompson

Abstract

Energy proves an essential input with robust comparative static effects in a factor proportions model of production for the US. Energy has a robust marginal product and significant substitution in a novel production function motivated by the definition of physical work. In this physical production function, energy and labor inputs interact separately with capital. The present data cover the years 1951 to 2008. One version of the model assumes an endogenous price of energy, and another endogenous energy imports at the world price. These comparative static models of production and trade have an array of policy implications.

Suggested Citation

  • Henry Thompson, 2010. "Energy Substitution, Production, and Trade in the US," Auburn Economics Working Paper Series auwp2010-06, Department of Economics, Auburn University.
    • Handle: RePEc:abn:wpaper:auwp2010-06
    as

    Download full text from publisher

    File URL: https://cla.auburn.edu/econwp/Archives/2010/2010-06.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jones, Ronald W & Scheinkman, Jose A, 1977. "The Relevance of the Two-Sector Production Model in Trade Theory," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 909-935, October.
    2. Wolfgang F. Stolper & Paul A. Samuelson, 1941. "Protection and Real Wages," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(1), pages 58-73.
    3. Henry Thompson, 1985. "Complementarity in a Simple General Equilibrium Production Model," Canadian Journal of Economics, Canadian Economics Association, vol. 18(3), pages 616-621, August.
    4. Ronald W. Jones, 2018. "The Structure of Simple General Equilibrium Models," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 4, pages 61-84, World Scientific Publishing Co. Pte. Ltd..
    5. Henry Thompson, 2010. "Wages in a factor proportions time series model of the US," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 19(2), pages 241-256.
    6. Thompson, Henry, 2006. "The applied theory of energy substitution in production," Energy Economics, Elsevier, vol. 28(4), pages 410-425, July.
    7. Chang, Winston W, 1979. "Some Theorems of Trade and General Equilibrium with Many Goods and Factors," Econometrica, Econometric Society, vol. 47(3), pages 709-726, May.
    8. Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62, Elsevier.
    9. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
    10. Jones, Ronald W. & Easton, Stephen T., 1983. "Factor intensities and factor substitution in general equilibrium," Journal of International Economics, Elsevier, vol. 15(1-2), pages 65-99, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thompson, Henry, 2014. "An energy factor proportions model of the US economy," Energy Economics, Elsevier, vol. 43(C), pages 1-5.
    2. Kim, Hyeongwoo & Thompson, Henry, 2014. "Wages in a factor proportions model with energy input," Economic Modelling, Elsevier, vol. 36(C), pages 495-501.
    3. Henry Thompson, 2016. "Tariffs and Wages in Trade Theory," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 399-405, May.
    4. Thompson, Henry, 2011. "Estimating the Heckscher-Ohlin model: Inverting the inverse matrix," International Review of Economics & Finance, Elsevier, vol. 20(2), pages 185-192, April.
    5. Mitra, Tapan, 2007. "On Commodity Prices and Factor Rewards: A Close Look at Sign Patterns," Working Papers 07-07, Cornell University, Center for Analytic Economics.
    6. Kim, Hyeongwoo & Thompson, Henry, 2009. "Factor Proportions Wages in a Structural Vector Autoregression," MPRA Paper 17798, University Library of Munich, Germany.
    7. Henry Thompson, 1995. "Free trade and income redistribution in some developing and newly industrialized countries," Open Economies Review, Springer, vol. 6(3), pages 265-280, July.
    8. Andreas Pfingsten & Reiner Wolff, 2009. "Factor Supply Changes in Small Open Economies: Rybczynski Derivatives under Increasing Marginal Costs," Finnish Economic Papers, Finnish Economic Association, vol. 22(1), pages 9-20, Spring.
    9. Dumont, Michel, 2004. "The Impact of International Trade with Newly Industrialised Countries on the Wages and Employment of Low-Skilled and High-Skilled Workers in the European Union," Thesis Commons bmxag, Center for Open Science.
    10. Thompson, Alexi & Thompson, Henry, 2021. "The imputed effect of US tariffs on wages," International Review of Economics & Finance, Elsevier, vol. 72(C), pages 191-197.
    11. Henry Thompson, 2010. "The Stolper-Samuelson Box," Chapters, in: Mark Blaug & Peter Lloyd (ed.), Famous Figures and Diagrams in Economics, chapter 40, Edward Elgar Publishing.
    12. Naoko Shinkai, 2000. "Does the Stopler-Samuelson Theorem Explain the Movement in Wages? The Linkage Between Trade and Wages in Latin American Countries," Research Department Publications 4237, Inter-American Development Bank, Research Department.
    13. R. E. Baldwin & G. G. Cain, "undated". "Shifts in U.S. Relative Wages: The Role of Trade, Technology, and Factor Endowments," Institute for Research on Poverty Discussion Papers 1132-97, University of Wisconsin Institute for Research on Poverty.
    14. Osei-Agyeman Yeboah & Nicholas Mensah Amoah & Shaibu Fuseini & Issah Sugri, 2023. "The Impact of the Local Green Economy of Ghana: A General Equilibrium Analysis," Sustainability, MDPI, vol. 15(23), pages 1-11, November.
    15. Thompson, Henry, 2014. "Energy tariffs in a small open economy," Energy Economics, Elsevier, vol. 44(C), pages 63-67.
    16. Hikari Ban, 2010. "Factor Substitution and Relative Factor Prices," Review of International Economics, Wiley Blackwell, vol. 18(3), pages 562-573, August.
    17. Henry Thompson, 2013. "Resource Rights and Markets in a General Equilibrium Model of Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 131-139, September.
    18. Henry Thompson, 1998. "Production with Two Factors and Many Goods Large Firms in a Small Open Economy," International Economic Journal, Taylor & Francis Journals, vol. 12(2), pages 107-116.
    19. Bliss, Christopher, 2007. "Trade, Growth, and Inequality," OUP Catalogue, Oxford University Press, number 9780199204649.
    20. Henry Thompson & John Francis, 2009. "Tariff Elimination and the Wage Gap in an Industrial Specific Factors Model," Review of International Economics, Wiley Blackwell, vol. 17(3), pages 447-460, August.

    More about this item

    Keywords

    Energy; Substitution; Production; Trade;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:abn:wpaper:auwp2010-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Hyeongwoo Kim (email available below). General contact details of provider: https://edirc.repec.org/data/deaubus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.