Land, labor and the wage-rental ratio : factor price convergence in the late nineteenth century
|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
Factors of production--Econometric models
|Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
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