Comment on Suzuki's rebuttal of Batra and Casas

28 Nov 2017  ·  Nakada Yoshiaki ·

Batra and Casas (1976) claimed that 'a strong Rybczynski result' arises in the three-factor two-good general equilibrium trade model. In subsequent comments, Suzuki (1983) contended that this could not be the case... Among his comments, Suzuki found that the set of three equations holds for the Allen-partial elasticity of substitution under the assumption of perfect complementarity, and he applied these to his analysis. In the following, I demonstrate that these are impossible, hence his dissenting proof is not plausible. read more

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