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The Lens Condition with Two Factors

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Listed:
  • Siu‐kee Wong
  • Kwan Koo Yun

Abstract

The authors give a simple, constructive proof that the lens condition implies the factor price equalization condition when there are only two factors. Taking stock of the conditions under which the lens condition is equivalent to the factor price equalization condition, there are the conditions of two factors or two goods or two countries, or the condition that the rank of the factor‐use matrix is equal to the number of goods. It is shown that, in an essential sense, there are no other such conditions.

Suggested Citation

  • Siu‐kee Wong & Kwan Koo Yun, 2003. "The Lens Condition with Two Factors," Review of International Economics, Wiley Blackwell, vol. 11(4), pages 692-696, September.
    • Handle: RePEc:bla:reviec:v:11:y:2003:i:4:p:692-696
    DOI: 10.1111/1467-9396.00411
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    References listed on IDEAS

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    1. Ling Qi, 2003. "Conditions for Factor Price Equalization in the Integrated World Economy Model," Review of International Economics, Wiley Blackwell, vol. 11(5), pages 899-908, November.
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    Cited by:

    1. Kazuyuki Nakamura, 2015. "Computational investigation of the feasibility of factor price equalization," Letters in Spatial and Resource Sciences, Springer, vol. 8(2), pages 101-108, July.
    2. Brakman, Steven & van Marrewijk, Charles, 2013. "Lumpy countries, urbanization, and trade," Journal of International Economics, Elsevier, vol. 89(1), pages 252-261.
    3. Ling Qi, 2010. "Why the Lens Condition Cannot Imply Factor Price Equalization," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 772-779, September.
    4. Andrew B. Bernard & Raymond Robertson & Peter K. Schott, 2010. "Is Mexico a Lumpy Country?," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 937-950, November.
    5. 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.
    6. Charles Van Marrewijk & Steven Brakman, 2011. "Missing trade and lumpy countries," ERSA conference papers ersa10p610, European Regional Science Association.

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    3. Brakman, Steven & van Marrewijk, Charles, 2013. "Lumpy countries, urbanization, and trade," Journal of International Economics, Elsevier, vol. 89(1), pages 252-261.
    4. Andrew B. Bernard & Raymond Robertson & Peter K. Schott, 2010. "Is Mexico a Lumpy Country?," Review of International Economics, Wiley Blackwell, vol. 18(5), pages 937-950, November.
    5. 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.

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