The Sufficiency of the "Lens Conditions" 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.
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1999|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://fordschool.umich.edu/rsie/
More information through EDIRC
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.:
- 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, A.V., 1991.
"The Possibility of Factor Price Equalization, Revisited,"
277, Research Seminar in International Economics, University of Michigan.
- Deardorff, Alan V., 1994. "The possibility of factor price equalization, revisited," Journal of International Economics, Elsevier, vol. 36(1-2), pages 167-175, February.
- 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.
- Demiroglu, Ufuk & Koo Yun, Kwan, 1999.
"The lens condition for factor price equalization,"
Journal of International Economics,
Elsevier, vol. 47(2), pages 449-456, April.
- Debaere, Peter & Demiroglu, Ufuk, 2003. "On the similarity of country endowments," Journal of International Economics, Elsevier, vol. 59(1), pages 101-136, January.
When requesting a correction, please mention this item's handle: RePEc:mie:wpaper:434. 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: (FSPP Webmaster)
If references are entirely missing, you can add them using this form.