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A 'Live' Version of the HOS Model in Excel

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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/uth/wpaper/DEFWP2009-02.pdf
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Bibliographic Info

Paper provided by Utah State University, Department of Economics and Finance in its series Working Papers with number 200902.

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Length: 10 pages
Date of creation: 10 Jun 2009
Date of revision: 16 Jun 2009
Handle: RePEc:uth:wpaper:200902

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

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  1. 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.
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Cited by:
  1. John Gilbert, 2009. "A 'Live' Version of the Specific Factors Model in Excel," Working Papers 2009-12, Utah State University, Department of Economics, revised 11 Oct 2009.
  2. John Gilbert, 2009. "A 'Live' Version of the HOS Model with Interventions," Working Papers 2009-05, Utah State University, Department of Economics.

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