The sufficiency of the 'lens condition' for factor price equalization in the case of two factors
Factor price equalization (FPE) is a central theme in trade theory, for which Dixit and Norman (1980) establish the necessary and sufficient condition (the FPE condition). Deardorff (1994) provides a more intuitive condition (the lens condition) and establishes its necessity in general, as well as its sufficiency for the case of 2 countries. In this paper, I prove that the lens condition is sufficient for FPE in the case of 2 factors. This theorem has implications for empirical work.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BLACKORBY, Ch. & SCHWORM, W. & VENABLES, A., 1986.
"Necessary and sufficient conditions for factor price equalization,"
CORE Discussion Papers
1986047, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Blackorby, Charles & Schworm, William & Venables, Anthony, 1993. "Necessary and Sufficient Conditions for Factor Price Equalization," Review of Economic Studies, Wiley Blackwell, vol. 60(2), pages 413-34, April.
- Donald R. Davis & David E. Weinstein, 1998.
"An Account of Global Factor Trade,"
NBER Working Papers
6785, National Bureau of Economic Research, Inc.
- Davis, D.R. & Weinstein, D.E., 1999. "An Account of Global Factor Trade," Working Papers 435, Research Seminar in International Economics, University of Michigan.
- Donald R. Davis & David E. Weinstein, 1998. "An Account of Global Factor Trade," Harvard Institute of Economic Research Working Papers 1849, Harvard - Institute of Economic Research.
- Deardorff, Alan V., 1994.
"The possibility of factor price equalization, revisited,"
Journal of International Economics,
Elsevier, vol. 36(1-2), pages 167-175, February.
- Deardorff, A.V., 1991. "The Possibility of Factor Price Equalization, Revisited," Working Papers 277, Research Seminar in International Economics, University of Michigan.
- Debaere, Peter & Demiroglu, Ufuk, 2003. "On the similarity of country endowments," Journal of International Economics, Elsevier, vol. 59(1), pages 101-136, January.
- Demiroglu, U. & Yun, K.K., 1997.
"The Lens Conditions for factor Price Equalization,"
404, Research Seminar in International Economics, University of Michigan.
When requesting a correction, please mention this item's handle: RePEc:eee:inecon:v:53:y:2001:i:2:p:463-474. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.