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A 'Live' Version of the Specific Factors Model in Excel

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Abstract

We present a numerical version of the specific factors model of production/trade 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 usual properties (price-factor price relations, etc.) of the specific factors model.

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File URL: ftp://repec.bus.usu.edu/RePEc/uth/wpaper/DEFWP2009-06.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 200906.

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Length: 12 pages
Date of creation: 11 Oct 2009
Date of revision: 11 Oct 2009
Handle: RePEc:uth:wpaper:200906

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Keywords: Specific factors model; Excel;

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  1. John Gilbert, 2009. "A 'Live' Version of the HOS Model in Excel," Working Papers, Utah State University, Department of Economics and Finance 200902, Utah State University, Department of Economics and Finance, revised 16 Jun 2009.
  2. John Gilbert & Reza Oladi, 2011. "Excel Models for International Trade Theory and Policy: An Online Resource," The Journal of Economic Education, Taylor & Francis Journals, Taylor & Francis Journals, vol. 42(1), pages 95-95, January.
  3. Soumaya M. Tohamy & J. Wilson Mixon, 2003. "Lessons from the Specific Factors Model of International Trade," The Journal of Economic Education, Taylor & Francis Journals, Taylor & Francis Journals, vol. 34(2), pages 139-150, January.
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