The lens condition for factor price equalization
AbstractDeardorff (1994) provides a condition that is necessary for factor price equalization across countries. That condition is a generalization of "country endowments contained in the diversification cone" from the standard 2x2x2 Hecksher-Ohlin model to the case of many goods, countries and factors. He also shows that this condition is sufficient in the case of two countries, and conjectures that sufficiency might hold in general. In this paper we establish sufficiency in some further cases. However, we show by a counterexample that the sufficiency does not hold in general.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 47 (1999)
Issue (Month): 2 (April)
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Web page: http://www.elsevier.com/locate/inca/505552
Other versions of this item:
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F10 - International Economics - - Trade - - - General
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- Deardorff, A.V., 1991.
"The Possibility of Factor Price Equalization, Revisited,"
277, Research Seminar in International Economics, University of Michigan.
- Deardorff, Alan V., 1994. "The possibility of factor price equalization, revisited," Journal of International Economics, Elsevier, vol. 36(1-2), pages 167-175, February.
- 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.
- Brakman, Steven & van Marrewijk, Charles, 2013.
"Lumpy countries, urbanization, and trade,"
Journal of International Economics,
Elsevier, vol. 89(1), pages 252-261.
- Harald Fadinger, 2006. "Development Accounting in a Heckscher-Ohlin World," DEGIT Conference Papers c011_017, DEGIT, Dynamics, Economic Growth, and International Trade.
- Kwan Koo Yun & Siu-kee Wong, 2001. "The Lens Condition with Two Factors," Discussion Papers 01-08, University at Albany, SUNY, Department of Economics.
- Xiang, Chong, 2001.
"The sufficiency of the 'lens condition' for factor price equalization in the case of two factors,"
Journal of International Economics,
Elsevier, vol. 53(2), pages 463-474, April.
- Xiang, C., 1999. "The Sufficiency of the "Lens Conditions" for Factor Price Equalization in the Case of Two Factors," Working Papers 434, Research Seminar in International Economics, University of Michigan.
- Debaere, Peter, 2004. "Does lumpiness matter in an open economy?: Studying international economics with regional data," Journal of International Economics, Elsevier, vol. 64(2), pages 485-501, December.
- Debaere, Peter & Demiroglu, Ufuk, 2003. "On the similarity of country endowments," Journal of International Economics, Elsevier, vol. 59(1), pages 101-136, January.
- Harald Fadinger, 2007. "Development Accounting in a Heckscher-Ohlin World," 2007 Meeting Papers 600, Society for Economic Dynamics.
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