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Saw this post here and am wondering if an answer has been posted. Grateful for a solution, thanks! 5. Non-traded Intermediate Goods Imagine a constant-returns

Saw this post here and am wondering if an answer has been posted. Grateful for a solution, thanks!

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5. Non-traded Intermediate Goods Imagine a constant-returns economy with the following production structure. There are three "primary" factors of production: capital, "raw land," and "raw labor," available in exogenously fixed supplies, K, E, and L respectively. These can be used to produce two intermediate goods: capital and raw land produce "improved land," while capital and raw labor produce "improved labor." Finally, improved land (B) and improved labor (#) produce food (F) and manufactures (M). The food sector is (improved )-land intensive. Let p; be the price of factor or intermediate good i, for i = K, E, L, B, H. Let p be the relative price of food. Consider a country that exports manufactures and imports food in a competitive trade equilibrium. What are the distributional implications of trade in this economy? That is, consider the owners of capital, raw land and raw labor as three different sets of households. Which of these households gain from trade, which lose, and under what conditions? You may use algebra, diagrams and/ or logic to support your answers

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