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A 'Live' Version of the HOS Model with Interventions

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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 that features tax interventions at the input, output, consumption and trade levels. The model features the most common graphical devices used to explain the model properties, including integrating partial equilibrium geometry corresponding to the general equilibrium system. The solution is embedded in the sheet, making the use of the Solver add-in unnecessary. The model can be used to demonstrate the a wide variety of results from the neoclassical theory of commercial policy.

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File URL: ftp://repec.bus.usu.edu/RePEc/usu/pdf/eri2009-05.pdf
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Bibliographic Info

Paper provided by Utah State University, Department of Economics in its series Working Papers with number 2009-05.

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Length: 11 pages
Date of creation: 26 Jul 2009
Date of revision:
Handle: RePEc:usu:wpaper:2009-05

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Keywords: Heckcher-Ohlin-Samuelson model; Factor proportions; Tariffs; Excel;

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  1. John Gilbert, 2009. "A 'Live' Version of the HOS Model in Excel," Working Papers 2009-02, Utah State University, Department of Economics, revised 10 Jun 2009.
  2. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
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