Spear, Stephen E.; Coen-Pirani, Daniele; Yeltekin, Sevin - Carnegie Mellon University, Tepper School of Business
This paper investigates the likelihood of factor-price equalization under the simple assumptions of Heckscher-Ohlin Theory. Factor-price equalization is also directly related to whether countries specialize or not in the global market. A full-equilibrium in the world requires not only the...