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Factor Price Convergence in the Late Nineteenth Century
Abstract
The authors examine a dramatic historical episode of factor price convergence in the late nineteenth century. Their focus is convergence between Old World and New, and the analysis centers on land and labor. Wage-rental ratios boomed in the Old World and collapsed in the New, moving the resource-rich, labor-scarce New World closer to the resource-scarce, labor-abundant Old World. The authors use econometrics and simulations to identify proconvergence forces, which include commodity price convergence, factor accumulation, and factor-saving biases. The results confirm that open-economy characteristics and international market integration are important sources of convergence. Copyright 1996 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Cites
Ocean Freight Rates and Productivity, 1740–1913: The Primacy of Mechanical Invention Reaffirmed
Harley, C. K. (1988) · The Journal of Economic History · doi:10.1017/s0022050700006641 · Cited by 340
Cited by
O'Rourke, K. H., & Williamson, J. G. (2002) · European Review of Economic History · doi:10.1017/s1361491602000023 · Cited by 472
Self-citationDas Human-Kapital: A Theory of the Demise of the Class Structure
GALOR, O., & MOAV, O. (2006) · Review of Economic Studies · doi:10.1111/j.1467-937x.2006.00370.x · Cited by 469
No price like home: global house prices, 1870–2012
Knoll, K., Schularick, M., & Steger, T. (2017) · American Economic Review · doi:10.1257/aer.20150501 · Cited by 467
Trading Population for Productivity: Theory and Evidence
GALOR, O., & MOUNTFORD, A. (2008) · Review of Economic Studies · doi:10.1111/j.1467-937x.2008.00501.x · Cited by 313
International Comparisons of Real Product, 1820–1990: An Alternative Data Set
Prados de la Escosura, L. (2000) · Explorations in Economic History · doi:10.1006/exeh.1999.0731 · Cited by 310
Metadata
- Authors
- O'Rourke, K. H., Taylor, A. M., & Williamson, J. G.
- Venue
- International Economic Review
- Publisher
- JSTOR
- Published
- 1996-08
- Volume
- 37
- Issue
- 3
- Pages
- 499
- ISSN
- 0020-6598 (ISSN-L)
- OpenAlex
- W2068193394
- Cited by
- 204
- References
- 1
- FWCI
- 18.85
- Type
- journal article
- Language
- en
- Open access
- closed
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