The lens condition for factor price equalization

• 成果类型: Article
• 署名作者: Demiroglu, U; Yun, KK
• 署名单位: University of Michigan System; University of Michigan; State University of New York (SUNY) System; University at Albany, SUNY
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00022-1
• 发表日期: 1999
• 页码: 449-456
• 关键词: factor price equalization; integrated world economy; lens condition

摘要

Deardorff (1994) provides a condition that is necessary for factor price equalization across countries. This is a generalization of the condition that ''country endowments should he in the diversification cone from the standard 2 x 2 x 2 Heckscher-Ohlin model to the case of many goods, countries and factors. He also shows that this condition is sufficient in the case of two countries and conjectures that the sufficiency might hold in general. In this paper we establish the sufficiency in further cases. However, we show by a counterexample that the sufficiency does not hold in general. (C) 1999 Elsevier Science B.V. All rights reserved.