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||Online since:||2009-12-10T16:47:42Z||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.||Item notes:||A hard copy is available in UCD Library at GEN 330.08 IR/UNI||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP93/11||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|Language:||en||Status of Item:||Not peer reviewed|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|
Show full item record
Page view(s) 201,645
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.