Prove the stolper samuelson theorem


Problem

Prove the Stolper Samuelson theorem and use it to predict the effects on income distribution in Australia of the transition to renewable energy. You should imagine Australia is a specific factor economy with 'energy mining' in Qld and WA on the one hand, called M, and, 'everything else' combined (manufacturing, agriculture and services) in the other states, called E for Everything. For arguments sake you can assume non-energy exports are stable and are like an annuity for the Australian economy. You can assume mobile labour in between the two sectors, no unemployment, and that Australia is a price taker for its energy exports.

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Macroeconomics: Prove the stolper samuelson theorem
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