Estimating the HOV Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom
The paper develops a version of the Heckscher-Ohlin-Vanek (HOV) theorem of parametric technological differences for application to US and UK data on the factor contents of trade, output, and consumption. A matched set of input-output tables, consumption and trade vectors, and labor occupations is constructed. The data allow estimation of factor-specific and industry-specific productivity differences for incorporation into a second-stage econometric approach to assessing the HOV model. The data support a general model with technical differences and measurement error. The implied ratio of US-to-UK expenditure levels exceeds the ratio based on published GNP data. Copyright 1999 by Blackwell Publishing Ltd.
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Volume (Year): 7 (1999)
Issue (Month): 1 (February)
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