An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparative Advantage
Wen Li Cheng; Jeffrey D. Sachs; Xiaokai Yang
- An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparative Advantage
Cheng, Wen Li
Sachs, Jeffrey D.
- Working papers
- Earth Institute
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- Center for International Development at Harvard University
- Publisher Location:
- Cambridge, Mass.
- 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.
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