Land, labor and the wage-rental ratio : factor price convergence in the late nineteenth century

Files in This Item:
File Description SizeFormat 
wp93_11.pdf1.52 MBAdobe PDFDownload
Title: Land, labor and the wage-rental ratio : factor price convergence in the late nineteenth century
Authors: O'Rourke, Kevin H.
Taylor, Alan M.
Williamson, Jeffrey G.
Permanent link: http://hdl.handle.net/10197/1715
Date: May-1993
Abstract: This paper augments the new historical literature on factor price convergence. The focus is on the late nineteenth century, when economic convergence among the current OECD countries was dramatic; and the focus is on the convergence between Old World and New, by far the biggest participants in the global convergence during the period; and the focus is on land and labor, the two most important factors of production in the nineteenth century. Wage-rental ratios boomed in the Old World and collapsed in the New, moving the resource-rich and labor scarce New World closer to the resource-scarce and labor-abundant Old World. The paper uses both computable general equilibrium models and econometrics to identify the forces causing the convergence. These include: commodity price convergence and the Heckscher-Ohlin Theorem of factor price equalization; migration, capital-deepening and frontier disappearance, factors stressed by Malthus, Ricardo, Wicksell and Viner; and factor-saving biases associated with induced-innovational theory, an endogenous response to relative factor scarcities.
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Subject LCSH: Convergence (Economics)--Econometric models
Economic history
Factors of production--Econometric models
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

Show full item record

Page view(s) 10

180
checked on May 25, 2018

Download(s) 10

592
checked on May 25, 2018

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.