Artikel
Short run and long run in trade models: A note
This paper aims to capture key features of the Ricardo–Viner (RV) and Heckscher–Ohlin (HO) theories in a single dynamic general equilibrium framework. We use a simple 2-sector 2-factor model with adjustment costs associated with the movement of capital across sectors. We analyze the economy's response to exogenous changes in factor endowments and output prices. Our model reproduces the predictions of the RV theory in the short run (moment immediately after a parameter change) and the predictions of the HO model in the long run (steady state implied by a new set of parameters). Numerical examples of transition paths are also provided.
- Language
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Englisch
- Bibliographic citation
-
Journal: EconomiA ; ISSN: 1517-7580 ; Volume: 14 ; Year: 2013 ; Issue: 2 ; Pages: 2-10 ; Amsterdam: Elsevier
- Classification
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Wirtschaft
Neoclassical Models of Trade
Trade and Labor Market Interactions
- Subject
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Trade
Factor mobility
Dynamics
- Event
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Geistige Schöpfung
- (who)
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Rodrigues, Mauro
- Event
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Veröffentlichung
- (who)
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Elsevier
- (where)
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Amsterdam
- (when)
-
2013
- DOI
-
doi:10.1016/j.econ.2013.08.008
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Rodrigues, Mauro
- Elsevier
Time of origin
- 2013
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