a r t i c l e i n f o This paper examines the effects of conversion of one type of physical trade restrictions into another on the intra-country wage inequality in a standard 2 × 2 × 2 Heckscher–Ohlin–Samuelson model. It shows that a conversion of an import-quota into an equivalent voluntary export restraint raises wage-inequality in the country importing the unskilled-labor intensive good and ...

I develop a factor content of trade prediction for the Heckscher-OhlinVanek model (HOV) that relates bilateral differences in country endowments to bilateral differences in factor contents. The results are striking. In comparisons of North-South factor contents or factor contents of countries with very different endowments (e.g., with very different capital-labor ratios), there is clear support...

So long as both goods are produced and factor intensity reversals do not occur, each price vector (pX , pY ) corresponds to a unique factor price vector. This should be pretty obvious from both the Woodland-Mussa and the Lerner-Pearce diagram. With the same technology and given prices, there is a unique intersection between the zero profit lines in the Woodland-Mussa diagram. Similarly, for giv...

Study of the factor content of trade has become a laboratory to test our ideas about how the key elements of endowments, production, absorption and trade fit together within a general equilibrium framework. Already a great deal of progress has been made in fitting these pieces together. Nevertheless, the existing research raises a great many questions that should help to focus empirical researc...

Leamer and Levinsohn (1995) have recently proposed a formula for empirical work in international microeconomics summarized by the injunction to “Estimate, Don’t Test!” This is based on a perception that much of the empirical work has failed to be influential as it tests propositions we know ex ante to be false. We argue that the empirical work has been more influential than they suggest. We use...

The conception of aand P-receptors for catechol amines was originally based on experiments with heart and smooth muscle (Ahlquist, 1948). The present investigation deals with such receptors in glandular tissue. The starting-point was the observation that guanethidine causes a flow of saliva from the submaxillary gland which is completely abolished by dihydroergotamine in cats but only reduced b...

Conventional trade theory, which combines the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, implies that expanded trade between developed and developing countries will increase wage equality in the former. Th is theory is widely applied. It serves as the basis for estimating the impact of trade on wages using two-sector simulation models and the net factor content of trade. It leads...