Factor space


 

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Factor space

A graph in which the axes measure quantities of factors.



Similar Matches

Scarce factor

Scarce factor

The factor in a country's endowment with which it is least well endowed, relative to other factors, compared to other countries. May be defined by quantity or by price.


Factor Price Equalization Theorem

Factor Price Equalization Theorem

One of the major theoretical results of the Heckscher-Ohlin Model with at least as many goods as factors, showing that free and frictionless trade will cause FPE between two countries if they have identical, linearly homogeneous technologies and their factor endowments are sufficiently similar to be in the same diversification cone.


Risk factor

Risk factor

In arbitrage pricing theory or the multibeta capital asset pricing model, the set of common factors that impact returns, e.g., market return, interest rates, inflation, or industrial production.


Factor price frontier

Factor price frontier

A curve in factor space showing the minimum combinations of factor prices consistent with absence of profit in producing one or more goods, given their prices. Since, with perfect competition, profit implies disequilibrium, this shows a lower bound on equilibrium factor prices.


Factor abundance

Factor abundance

The abundance or scarcity of a primary factor of production. Because, in the short run at least, the supplies of primary factors are more or less fixed, this can be taken as given for determining much about a country's trade and other economic variables. Fundamental to the H-O Model.


Further Suggestions

Amortization factor
Specific factor
Factor endowment
Factor-price space
Factor price
Factor scarcity
Factor analysis
Tariff factory
Single factor model
Factor share
Abundant factor
Conversion factors
Currency factor
Factor portfolio
Annuity factor
Multifactor model
Reported factor
Pool factor
Footloose factor
Direct-plus-indirect factor content
Factor of production
price earnings growth factor
Factor content pattern of trade
earnings factor
Specific factors model


 
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