This paper views all interpersonal trade as Ricardian, while all international trade reflects each country's factor endowment. The model provides the logical link betwe en Heckscher-Ohlin and Ricardo. The strength of the model is that it allows simpler and more robust theorems about trade,...

In a Ricardian factor endowment model with different technologies, trade is determined by the location of the factors with first- and second-best comparative advantages as well as world demand. When both technology factor endowment differences between countries explain trade, the usual empirical...