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A 'Live' Version of the HOS Model in Excel

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Author Info
John Gilbert () (Department of Economics and Finance, Utah State University)

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Abstract

We present a numerical version of the factor proportions (Heckscher-Ohlin-Samuelson) model of production in a small economy, built in Excel. The model features the most common graphical devices used to explain the model properties. It differs from earlier work in that the solution is embedded in the sheet, making the use of the Solver add-in unnecessary. The equilibrium values and graphics respond instantly to changes in parameters/exogenous variables. The model can be used to demonstrate the Stolper-Samuelson and Rybczynski theorems, as well as other scenarios.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/eri2009-02.pdf
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Publisher Info
Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2009-02.

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Length: 10 pages
Date of creation: 10 Jun 2009
Date of revision: 10 Jun 2009
Handle: RePEc:usu:wpaper:2009-02

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Web page: http://apec.usu.edu/
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Related research
Keywords: Heckcher-Ohlin-Samuelson model; Factor proportions;

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Find related papers by JEL classification:
A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
D5 - Microeconomics - - General Equilibrium and Disequilibrium
F1 - International Economics - - Trade

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References listed on IDEAS
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  1. John Gilbert, 2004. "Using Nonlinear Programming in International Trade Theory: The Factor-Proportions Model," Journal of Economic Education, Helen Dwight Reid Foundation, vol. 35(4), pages 343-359. [Downloadable!]
  2. Mussa, Michael, 1979. "The two-sector model in terms of its dual : A geometric exposition," Journal of International Economics, Elsevier, vol. 9(4), pages 513-526, November. [Downloadable!] (restricted)
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This page was last updated on 2009-11-8.

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