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An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparartive Advantage

Author

Listed:
  • Cheng, W.L.
  • Sachs, J.D.
  • Yang, X.

Abstract

In the paper we introduce technological comparative advantage and transaction costs into the Heckscher-Olin (HO) model and refine the HO theorem, the Stolper-Samuelson theorem, the Rybczynski theorem, and factor equalization theorem. The refined core theorems can be used to accommodate recent empirical evidence that is at odds with the core theorems.

Suggested Citation

  • Cheng, W.L. & Sachs, J.D. & Yang, X., 1999. "An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparartive Advantage," Papers 9, Chicago - Graduate School of Business.
  • Handle: RePEc:fth:chicbu:9
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    Cited by:

    1. repec:taf:jocebs:v:14:y:2016:i:4:p:365-384 is not listed on IDEAS
    2. Sachs, J.D. & Yang, X., 1999. "Pattern of Trade and Economic Development in the Model of Monopolistic Competition," Papers 14, Chicago - Graduate School of Business.

    More about this item

    Keywords

    TRADE;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade

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