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Title: |
Capital Utilization in the Heckscher-Ohlin
Model with a Continuum of Goods |
| Author: |
Clague,
Christopher |
| Author
Affiliation: |
U MD |
| Source: |
International Economic Journal, Spring 1990, v. 4, no. 1, pp. 1-23 |
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Publication Date: |
Spring 1990 |
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Abstract: |
This paper introduces endogenous capital
utilization into the Dornbusch-Fischer-Samuelson model of a continuum of
goods, shows the conditions under which factor-price equalization can
occur, and describes the possible patterns of trade. For some patterns
of trade the paper explores the effects of factor endowments and
workers' shift-work preferences on trade, factor prices and the level of
capital utilization. Some of the paradoxes in the prior literature on
trade models with endogenous utilization are found to be less likely in
the continuum-of-goods framework. |
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