The Lens Conditions for Factor Price Equalization

NOTE: This is a description of the paper and is not the actual abstract. A condition formulated by Deardorff (1994) generalizes the "diversification cone" concept from the standard 2x2x2 Hecksher-Ohlin model to the general case of many goods, countries and factors. He shows that this condition is necessary for factor price equalization. He also establishes that it is sufficient in the case of two countries, and conjectures that sufficiency might hold in general. However, as we show in this paper, while this conjecture is valid in some further special cases, it is not in general