Ronald Jones constructed a magnification effect for prices as a generalization of a theorem that is a result of this model.
Ronald Jones constructed a magnification effect for prices as a generalization of a theorem that is a result of this model. That theorem, suggests that there is a inverse proportionality between the cost of capital- intensive goods and labor wages and is known as the Stopler-Samuleson theorem. Modified by Vanek, it differs from earlier models in that it assumes there are no production technology differences between various countries. More generically known as the Factory Proportions model, it models the pattern of international trade due to the relevant resources differences between exporting nations. Based on the work of Ricardo's theory of comparative advantage, for 10  points, name this doubly eponymous economic equilibrium model developed at the Stockholm School of Economics.
Ronald Jones constructed a magnification effect for prices as a generalization of a theorem that is a result of this model.
Heckscher-Ohlin Model