In the 2X2X2 Heckscher-Ohlin model there exists a one to one relation between relative good prices and relative factor prices. A change in the relative price of one good changes the relative price of the factor used intensively in the production of the good in the same direction. We review this...

The paper develops a model of firm's investment under uncertainty with financial market imperfections and analyzes the effects of financial constraints on firm's investment. Firm's investment is an increasing function of the firm's marginal q, however the investment function is characterized by...

The paper develops a model of firmś investment under uncertainty with financial market imperfections and analyzes the effects of financial constraints on firmś investment. Firmś investment is an increasing function of the firmś marginal q, however the investment function is characterized by...