| K | = | capital-goods (North) |
| F | = | food (South) |
| LK | = | labor in capital goods sector (North) |
| LF | = | labor in food sector (South) |
| PK | = | price of capital goods (numeraire) |
| PF | = | price of food |
| aKK | = | capital-output ratio in capital goods sector |
| aLK | = | labor-output ratio in capital goods sector |
| aKF | = | capital-output ratio in food sector |
| aKF | = | labor-output ratio in food sector |
|
| = | fixed real wage in food sector (South) |
| WK | = | wage in capital goods sector (North) |
| WF | = | wage in food sector (South) |
| ρK | = | rate of profit in capital goods sector (North) |
| ρF | = | rate of profit in food sector (South) |
| γK | = | markup in capital goods sector (North) |
| γF | = | markup in food sector (South) |