Similarity of endowments and the factor price equalization condition (Q1404143)
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scientific article; zbMATH DE number 1968460
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Similarity of endowments and the factor price equalization condition |
scientific article; zbMATH DE number 1968460 |
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Similarity of endowments and the factor price equalization condition (English)
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20 August 2003
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This paper presents a geometric interpretation of Len's condition proposed by Deardorff as a shortcut for checking the Factor Price Equalization (FPE) condition. The author gives an interpretation of the factor using Len's asa projection of the FPE zone. Using the Len's condition, an algebraic condition is defined in such a way that factor prices do not equalize at an international equilibrium. A number of theorems is derived without experimentation.
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Len's condition
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Share constant
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FPR condition
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0.7836382985115051
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