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The Lens Condition with Two Factors

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Author Info
Siu-kee Wong
Kwan Koo Yun

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Abstract

The authors give a simple, constructive proof that the lens condition implies the factor price equalization condition when there are only two factors. Taking stock of the conditions under which the lens condition is equivalent to the factor price equalization condition, there are the conditions of two factors or two goods or two countries, or the condition that the rank of the factor-use matrix is equal to the number of goods. It is shown that, in an essential sense, there are no other such conditions. Copyright Blackwell Publishing Ltd 2003.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/1467-9396.00411
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of International Economics.

Volume (Year): 11 (2003)
Issue (Month): 4 (09)
Pages: 692-696
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Handle: RePEc:bla:reviec:v:11:y:2003:i:4:p:692-696

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  1. Bodil O. Hansen & Hans Keiding, 2008. "How Likely Is Factor Price Equalization?," Discussion Papers 08-10, University of Copenhagen. Department of Economics. [Downloadable!]
  2. Andrew B. Bernard & Raymond Robertson & Peter K. Schott, 2005. "A Note on the Empirical Implementation of the Lens Condition," NBER Working Papers 11448, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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