Specific Factors Model

This is a Solver-based version of the specific factors model of production (see Jones, 1971). The model uses Cobb-Douglas functions for both production and final demand, and is very similar in structure to the HOS model. Exogenous variables and parameters are in white, endogenous variables in grey. The user can change endowments, price, technology or preferences. The model incorporates the common VMPL diagram, and the quadrant PPF diagram. Another version of the model, which emphasizes the relationship between the specific factors model and the HOS model is also available, which instead focuses on the Edgeworth box representation. A 'live' version of the model is also available.
 
 

Model Layout Guide
 
 

Exercises

This model can accomplish all of the same exercises as the live version, the only changes being the location of the parameter/exogenous variable cells in the sheet. See the relevant section of the live version page for suggestions.


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