We propose a model of social interactions based on comparative advantage. When comparative advantage is the guiding principle of social interactions, the effect of moving a student into an environment with higher-achieving peers depends on where in the ability distribution she falls and the shadow prices that clear the social market. We show that the model’s key prediction–an individual’s ordin...

This paper constructs and structurally estimates a dynamic occupational choice model that has two distinct features. First, an occupation is vertically and horizontally differentiated by a multidimensional task complexity measure. This allows a simultaneous analysis of career progression and comparative advantage. Second, the model includes hundreds of occupations by characterizing all jobs by ...

We analyze the dynamics of Chinese comparative advantage as measured by export shares and the Balassa index using 3-digit and 4-digit sectors for the period 1970 – 1997. We use novel tools to identify periods of rapid structural change and the persistence of comparative advantage, such as Galtonian regressions, probability-probability (p-p) plots, and the Harmonic Mass index, to supplement the ...

E Derivation of Trade Equilibria in Section 5.5 9 E.1 Conditions that must hold in any equilibrium. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 E.2 Equilibria of type A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 E.3 Equilibria of type B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 E.4 Equilibria of type...

the purpose of this study is to investigate comparative advantages of corn in comparison with other competitor crops. to do so, linear programming, to 2004-2005 data related to classic index (drc) in kermanshah province was applied. results showed that corn has comparative advantages in all regions of kermanshah province while in optimal cultivation pattern of 37.5 percentages of regions in exi...

We characterize the evolution of country export performance over the last five decades. Using the gravity model of trade, we extract a measure of country export capability by industry which we use to evaluate how absolute advantage changes over time for 135 industries in 90 countries. We alternatively use the Balassa RCA index as a measure of comparative advantage. Part I of the analysis docume...

This paper examines how country, industry and firm characteristics interact in general equilibrium to determine nations’ responses to trade liberalization. When firms possess heterogeneous productivity, countries differ in relative factor abundance and industries vary in factor intensity, falling trade costs induce reallocations of resources both within and across industries and countries. Thes...

in this paper, the value of exchange rate was calculated in order to determine comparative advantage in crops of sari township during 2009-2010. hence, first, comparative advantage indices are estimated by using a policy analysis matrix. the results showed that just wheat has a drc index of one in the minimum amount of national currency exchange rate value. this indicated the fact that only whe...