On the Likelihood of Factor Price Equalization with Nontraded Goods
论证非贸易商品会降低要素价格均等化的可能性,通过将非贸易商品加入小型开放经济的赫克歇尔-俄林模型,发现多样化锥的大小会因非贸易商品支出比例而缩小,从而降低要素禀赋落入锥内的概率。
It is argued that nontraded goods reduce the likelihood of factor price equalization. Specifically, the addition of nontraded goods to a small, open-economy Heckscher-Ohlin model with any number of goods reduces the size of the cone of diversification by the fraction of income spent on nontraded goods. This in turn may be regarded as reducing by a comparable amount the likelihood that a country's factor endowments will lie within that cone and, thus, the likelihood of factor price equalization. Copyright 1990 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.