When a set of industries is kept in long-run equilibrium, it is never possible to change just one price at a time. But when various (or all) prices are changing, the direction of change of any one price can depend on the numéraire adopted. What does it mean, then, to say that a long-run supply...

We consider, for alternative models of production, the comparative statics of constant-returns economies in long run competitive equilibrium, for which reswitching, capital-reversing and consumption-reversal are all completely absent. Notwithstanding the 'well-behaved' nature of these economies,...

In a two-sector model it is entirely arbitrary to take the depreciation rate to be the same in both sectors; capital is being used differently in the two sectors! With differential depreciation rates factor-intensity-reversal can arise even when both sectors have a Cobb-Douglas technology....

To be of practical use comparative statics must be able to compare long-period equilibria. Such equilibria will almost never have price vectors that are proportional with respect to all prices but one-yet such price vectors are precisely those underlying the usual substitution effect analysis....