Income Redistribution Effects in the Presence of Region-Specific Factors

Abstract

This paper examines the effect of changes in factor endowments on income Distribution in a four-factor, there-commodity model, in which two of the factors are region-specific while the other two are inter-regionally and inter-sectorally mobile. We provide an intermediate run model which bridges the gap between the Heckscher-Ohlin-Samuelson and the specific factor models, and which yields Results which differ from both these models. A simple derivation of factor Friendship patterns is made possible by exploiting the properties of the GNP Function. The procedure used may be applied to any n-commodity, (n+1)-factor Model. [F20]