Sans joint products, relative factor prices do determine relative goods prices. Free trade in goods thus can hope to equalize factor returns when this relationship is monotone and therefore uniquely reversible. However, when joint production obtains, often the same relative factor prices can...

Prior to the important Penn studies of Kravis-Heston-Summers, statisticians relied on exchange-rate conversion estimates that would be correct only if naive Gustav Cassel versions of purchasing-power parity were true. By contrast, correct real-income estimates, using actual local prices and...