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Title: |
Vertical Product Differentiation and the Value
of Time |
| Author: |
Roy, Udayan |
| Author
Affiliation: |
Long Island U |
| Source: |
International Economic Journal, Autumn 1998, v. 12, no. 3, pp. 97-111 |
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Publication Date: |
Autumn 1998 |
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Abstract: |
The paper presents a model of
international trade in goods that are ranked by quality. The model
differs from existing theories of trade under vertical product
differentiation in several ways. The main difference is in the way
quality is modeled. But this paper also has different positive
implications for the pattern of trade and it provides a theoretical
explanation for Leontief Paradox-type empirical findings. The model
indicates that several of the most important empirical challenges faced
by the Heckscher-Ohlin-Vanek model can be dealt with by taking into
account the quality aspect of traded goods. |
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