factor-price equalization theorem
E764587
The factor-price equalization theorem is a result in international trade theory stating that free trade in goods can lead to the equalization of factor prices (like wages and returns to capital) across countries, even without factor mobility.
All labels observed (1)
| Label | Occurrences |
|---|---|
| factor-price equalization theorem canonical | 1 |
How this entity was disambiguated
This entity first appeared as the object of triple T8901480 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.
NED1
Entity disambiguation (via context triple)
gpt-5-mini-2025-08-07
Target entity: factor-price equalization theorem Context triple: [Paul Samuelson, notableIdea, factor-price equalization theorem]
-
A.
Leontief paradox
The Leontief paradox is a famous empirical finding in international economics showing that U.S. trade patterns contradicted the predictions of the Heckscher–Ohlin model by appearing to export labor-intensive rather than capital-intensive goods.
-
B.
Studies in the Theory of International Trade
Studies in the Theory of International Trade is a classic 1937 economic treatise that rigorously analyzes and synthesizes the foundations of international trade theory, including comparative advantage, tariffs, and customs unions.
-
C.
Kaldor–Verdoorn law
The Kaldor–Verdoorn law is an economic principle that posits a positive relationship between the growth of output and the growth of labor productivity, often used to explain cumulative and self-reinforcing processes in industrial growth.
-
D.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
E.
International Economics: Theory and Policy
International Economics: Theory and Policy is a widely used textbook that provides a comprehensive introduction to international trade and finance, blending rigorous economic theory with real-world policy applications.
- F. None of above. chosen
- G. Unsure - the case is ambiguous/there is not enough information to decide.
NED2
Entity disambiguation (via description)
gpt-5-mini-2025-08-07
Target entity: factor-price equalization theorem Target entity description: The factor-price equalization theorem is a result in international trade theory stating that free trade in goods can lead to the equalization of factor prices (like wages and returns to capital) across countries, even without factor mobility.
-
A.
Leontief paradox
The Leontief paradox is a famous empirical finding in international economics showing that U.S. trade patterns contradicted the predictions of the Heckscher–Ohlin model by appearing to export labor-intensive rather than capital-intensive goods.
-
B.
Studies in the Theory of International Trade
Studies in the Theory of International Trade is a classic 1937 economic treatise that rigorously analyzes and synthesizes the foundations of international trade theory, including comparative advantage, tariffs, and customs unions.
-
C.
Kaldor–Verdoorn law
The Kaldor–Verdoorn law is an economic principle that posits a positive relationship between the growth of output and the growth of labor productivity, often used to explain cumulative and self-reinforcing processes in industrial growth.
-
D.
Hicks–Kaldor compensation criterion
The Hicks–Kaldor compensation criterion is an economic efficiency test stating that a policy change is desirable if those who gain could in principle compensate those who lose and still be better off, regardless of whether compensation actually occurs.
-
E.
International Economics: Theory and Policy
International Economics: Theory and Policy is a widely used textbook that provides a comprehensive introduction to international trade and finance, blending rigorous economic theory with real-world policy applications.
- F. None of above. chosen
Statements (46)
| Predicate | Object |
|---|---|
| instanceOf |
economic theorem
ⓘ
result in international trade theory ⓘ |
| addressesQuestion | whether trade in goods alone can equalize factor rewards internationally ⓘ |
| associatedWith |
Bertil Ohlin
NERFINISHED
ⓘ
Eli Heckscher NERFINISHED ⓘ Paul A. Samuelson NERFINISHED ⓘ Wolfgang F. Stolper NERFINISHED ⓘ |
| assumption |
both countries produce both goods (diversified production)
ⓘ
countries share the same homothetic and identical preferences ⓘ factors of production are immobile internationally ⓘ factors of production are perfectly mobile between sectors within each country ⓘ identical constant-returns-to-scale technologies across countries ⓘ markets are in competitive general equilibrium ⓘ no barriers to trade in goods ⓘ no trade costs ⓘ perfect competition in all markets ⓘ there are at least two goods and two factors of production ⓘ |
| basedOnModel | Heckscher–Ohlin model NERFINISHED ⓘ |
| category |
theorems in economics
ⓘ
theorems in international trade ⓘ |
| concerns |
distribution of income between factors of production
ⓘ
equalization of returns to capital across countries ⓘ wage equalization across countries ⓘ |
| contrastsWith | models with international factor mobility ⓘ |
| coreClaim |
factor prices such as wages and returns to capital can converge across countries through trade in goods alone
ⓘ
free trade in goods can equalize factor prices across countries ⓘ |
| field |
general equilibrium theory
ⓘ
international economics ⓘ international trade ⓘ |
| formalizes | link between commodity prices and factor prices ⓘ |
| historicalPeriod | 20th century ⓘ |
| implies |
countries with different factor endowments can have the same factor prices under free trade
ⓘ
under its assumptions, trade in goods can substitute for factor mobility ⓘ |
| influencedBy |
Walrasian general equilibrium theory
NERFINISHED
ⓘ
neoclassical production theory ⓘ |
| limitation |
exact factor-price equalization rarely observed empirically
ⓘ
sensitive to deviations from assumptions such as trade costs and technology differences ⓘ |
| logicalBasis | zero-profit conditions and cost-minimization in competitive equilibrium ⓘ |
| mathematicalFramework | 2×2×2 Heckscher–Ohlin model NERFINISHED ⓘ |
| relatesConceptuallyTo |
Heckscher–Ohlin theorem
GENERATED
ⓘ
Rybczynski theorem GENERATED ⓘ Stolper–Samuelson theorem GENERATED ⓘ |
| requires | equalization of goods prices across countries ⓘ |
| statusInLiterature | benchmark result in neoclassical trade theory ⓘ |
| usedFor |
analyzing effects of trade on wage inequality
ⓘ
studying relationship between globalization and factor incomes ⓘ |
How these facts were elicited
The pipeline generated the facts above by prompting gpt-5.1 with this entity's name + description and the instruction below.
Instruction
You are a knowledge base construction expert. Given a subject entity and a description of it, return factual statements that you know for the subject as a JSON list of dictionaries(triples), where keys must be "subject", "predicate" and "object". The number of facts may be very high, between 25 to 50 or more, for very popular subjects. For less popular subjects, the number of facts can be very low, like 5 or 10. # Requirements - If you don't know the subject at all, return an empty list. - If the subject is not a named entity, return an empty list. - Include at least one triple where predicate is "instanceOf". - Do not get too wordy. - Separate several objects into multiple triples with one object.
Input
Subject: factor-price equalization theorem Description of subject: The factor-price equalization theorem is a result in international trade theory stating that free trade in goods can lead to the equalization of factor prices (like wages and returns to capital) across countries, even without factor mobility.
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.