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Sufficiency Of The Lens Condition For Factor Price Equalization

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  • Ling Qi

Abstract

. Demiroglu and Yun (1999) and Wong and Yun (2003) gave counterexamples to show that the lens condition is not sufficient for factor price equalization. However, they leave the following two important problems untouched: why the lens condition is not sufficient for factor price equalization in general; and whether counterexamples can be given only in a very special case. This paper extends these papers to a framework without two input vectors being proportional to explain why the lens condition loses sufficiency and gives a lot of counterexamples which include those provided in above papers as special cases.

Suggested Citation

  • Ling Qi, 2007. "Sufficiency Of The Lens Condition For Factor Price Equalization," Pacific Economic Review, Wiley Blackwell, vol. 12(2), pages 237-243, May.
    • Handle: RePEc:bla:pacecr:v:12:y:2007:i:2:p:237-243
    DOI: 10.1111/j.1468-0106.2007.00352.x
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    1. Ling Qi, 2010. "Why the Lens Condition Cannot Imply Factor Price Equalization," Review of International Economics, Wiley Blackwell, vol. 18(4), pages 772-779, September.

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