Definition
Perfectly mobile factors: factors that can move freely across uses (sectors), so their price across sectors are the same.
Market clear condition
For perfectly mobile factors, the market clear condition is (Recall the accounting relationship in GTAP):
Level form
sum of conditional demand of the factor across all sectors = its total endowment
Linearized form
EQUATION MKTCLENDWM
# This equation assures market clearing for perfectly mobile endowment(HS2) #
(all,i,ENDWM_COMM)
qo(i) = sum{j,PROD_COMM, REVSHR(i,j) * qfe(i,j)}
+ endwslack(i) ;