Joint outputs and real wage rates

摘要: Abstract The magnification effect in standard international trade theory asserts that if the relative price of labor-intensive commodity increases, real wage will also increase, as wage/rental ratio. This result depends upon assumption both activities are nonjoint—each combining labor and capital to produce a single output, so joint instead, results jeopardy. It is shown difference between share one produced first activity second exceeds distributive shares second, an increase 1's raises unambiguously rises this case only ratio output two shares.