The Stolper–Samuelson theorem is a theorem in Heckscher–Ohlin trade theory. It describes the relationship between relative prices of output and relative factor returns—specifically, real wages and …

Mar 22, 2024 · The Stolper-Samuelson theorem is an economic theory that addresses the relationship between the returns to factors of production and trade in an international context.

The Stolper-Samuelson theorem demonstrates how changes in output prices affect the prices of the factors when positive production and zero economic profit are maintained in each industry.

The Stolper-Samuelson theorem demonstrates how changes in output prices affect the prices of the factors when positive production and zero economic profit are maintained in each industry.

Mar 6, 2025 · The Stolper-Samuelson theorem provides a clear answer to a deceptively simple question: when goods prices change due to trade policies, what happens to the incomes of different groups in …

The Stolper-Samuelson theorem (SST) simply suggests that, in any particular country, a rise in the relative (producer) prices of the labour intensive good will make labour better off and capital worse …

Jun 17, 2025 · The Stolper-Samuelson Theorem states that under certain conditions, an increase in the price of a good due to a tariff or other trade restriction will lead to an increase in the return to the …

This gives us the Stolper-Samuelson theorem: An increase in the price of a good will cause an increase in the price of the factor used intensively in that industry and a decrease in the price of the other factor.

Definition The Stolper-Samuelson Theorem explains how changes in trade can affect income distribution among different factors of production.

As first presented by Wolfgang Stolper and Paul A. Samuelson (1941), it dealt with a very special framework with many restrictive assumptions, most notably that the economy consists of only two …