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A 'Live' Version of the HOS Model with Interventions

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Abstract

We present a numerical version of the factor proportions (Heckscher-Ohlin-Samuelson) model of production in a small economy, built in Excel that features tax interventions at the input, output, consumption and trade levels. The model features the most common graphical devices used to explain the model properties, including integrating partial equilibrium geometry corresponding to the general equilibrium system. The solution is embedded in the sheet, making the use of the Solver add-in unnecessary. The model can be used to demonstrate the a wide variety of results from the neoclassical theory of commercial policy.

Suggested Citation

  • John Gilbert, 2009. "A 'Live' Version of the HOS Model with Interventions," Working Papers 200905, Utah State University, Department of Economics and Finance.
    • Handle: RePEc:uth:wpaper:200905
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    File URL: https://repec.bus.usu.edu/RePEc/uth/wpaper/DEFWP2009-05.pdf
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    as
    1. John Gilbert, 2009. "A 'Live' Version of the HOS Model in Excel," Working Papers 2009-02, Utah State University, Department of Economics, revised 10 Jun 2009.
    2. Brecher, Richard A. & Diaz Alejandro, Carlos F., 1977. "Tariffs, foreign capital and immiserizing growth," Journal of International Economics, Elsevier, vol. 7(4), pages 317-322, November.
    3. John Gilbert, 2009. "A 'Live' Version of the HOS Model with Interventions," Working Papers 200905, Utah State University, Department of Economics and Finance.
    4. J. N. Bhagwati & T. N. Srinivasan, 1969. "Optimal Intervention to Achieve Non-Economic Objectives," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 36(1), pages 27-38.
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    1. John Gilbert, 2009. "A 'Live' Version of the HOS Model with Interventions," Working Papers 200905, Utah State University, Department of Economics and Finance.

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    More about this item

    Keywords

    Heckcher-Ohlin-Samuelson model; Factor proportions; Tariffs; Excel;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • D5 - Microeconomics - - General Equilibrium and Disequilibrium
    • F1 - International Economics - - Trade

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