Resource Center

Advanced Search
Technical Papers
Working Papers
Research Memoranda
GTAP-L Mailing List
GTAP FAQs
Educational Materials
CGE Books/Articles
Important References
Submit New Resource

GTAP Resources: Resource Display

GTAP Resource #5141

"Chapter 12.A: Primary Factor Shares"
by Hertel, Thomas, Marinos Tsigas, Badri Narayanan and Robert McDougall


Abstract
In versions 1 - 3 of the GTAP Data Base, there was only one type of natural resource endowment identified, namely agricultural land.1 Because this factor was only used in agricultural production, it was also, by default, a sector-specific factor. The presence of a specific, or fixed, factor serves to dampen the supply response in the sector in question. When demand increases, part of that increase is translated into increased land rents. Indeed, the only way to increase agricultural output is to substitute other factors of production for land. This type of situation stands in sharp contrast to some manufacturing activities, say the production of wearing apparel, where supply can be increased indefinitely — provided the demand is there — by simply building new factories and hiring more workers. The only thing that forces the supply curve for such a sector to slope upward is the fact that as additional workers are bid away from other activities, wages will rise. This is a general equilibrium supply constraint.


Resource Details (Export Citation) GTAP Keywords
Category: GTAP 9 Data Base Documentation
Status: Published
By/In: Center for Global Trade Analysis
Date: 2016
Version:
Created: Douglas, J. (6/8/2016)
Updated: Douglas, J. (6/8/2016)
Visits: 685
- The GTAP Data Base and extensions


Attachments
If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.


Public Access
  File format Chapter 12.A: Primary Factor Shares  (173.5 KB)   Replicated: 0 time(s)


Restricted Access
No documents have been attached.


Special Instructions
No instructions have been specified.


Comments (0 posted)
You must log in before entering comments.

No comments have been posted.