The sufficiency of the 'lens condition' for factor price equalization in the case of two factors

• 成果类型: Article
• 署名作者: Xiang, C
• 署名单位: University of Michigan System; University of Michigan
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(00)00065-9
• 发表日期: 2001
• 页码: 463-474
• 关键词: factor price equalization; integrated world economy; intermediate lens; lens condition

摘要

Factor price equalization (FPE) is a central theme in trade theory, for which [Dixit, A.K., Norman, V., 1980. Theory of International Trade, Cambridge University Press, London] establish the necessary and sufficient condition (the Dixit-Norman condition). [Deardorff, A.V. 1994. The possibility of factor price equalization: revisited, Journal of International Economics 36, 167-175.] provides a more intuitive condition (the lens condition) and establishes its necessity in general, as well as its sufficiency for the case of two countries. In this paper, I prove that the lens condition is sufficient for FPE in the case of two factors. This theorem has implications for empirical work. (C) 2001 Elsevier Science B.V. All rights reserved.