Ricardo Viner model

from Wikipedia, the free encyclopedia

The Ricardo Viner model , also model of specific factors (Specific Factors Model) was developed by Jacob Viner (1892-1970) on the basis of commercial theoretical considerations of David Ricardos (1772-1823).

content

The Ricardo-Viner model assumes that the factors involved in the production of a good in a particular industry are specific to that industry. This means that these factors are more or less linked to this type of production and cannot be freely transferred to other branches of industry. This in turn implies that - contrary to the assumption in the Stolper-Samuelson theorem - if production is throttled in one branch of industry for whatever reasons (a fall in the price of the goods produced would be conceivable due to cheaper imports), the factors released are not readily available in another industry Can be used.
The degree of specificity reflects the level of the costs of an exit (exit costs) from the industry.

meaning

For the labor factor in particular, this means that if one branch of industry breaks away, workers who are made redundant cannot be found freely in another branch of industry due to their specificity (for example, specialist knowledge acquired through specialization in their previous occupation). But the capital factor is often tied to a specific production, so a printing press cannot produce a computer.
In addition, it can be assumed that with increasing specialization within different industries, the specificity of the factors used in production increases.