Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/89723
Authors: 
Fisher, Eric O'N.
Year of Publication: 
2014
Series/Report no.: 
CESifo Working Paper 4566
Abstract: 
This paper is the first application of the singular value decomposition in general equilibrium theory. Every technology matrix can be decomposed into three parts: (1) a definition of composite commodities; (2) a definition of composite factors; and (3) a simple map of composite factor prices into composite goods prices. This technique gives an orthogonal decomposition of the price space into two complementary subspaces: (1) vectors that generate the price cone; and (2) a basis that describe the flats on the production possibility frontier. This decomposition can be used easily to compute Rybczynski effects.
Subjects: 
singular value decomposition
international trade
Rybezynski
Stolper-Samuelson
JEL: 
F10
D50
Document Type: 
Working Paper

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