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The Lens Condition with Two Factors
Author(s) -
Wong Siukee,
Yun Kwan Koo
Publication year - 2003
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/1467-9396.00411
Subject(s) - constructive , economics , lens (geology) , stock (firearms) , rank (graph theory) , through the lens metering , equalization (audio) , mathematical economics , econometrics , mathematics , computer science , optics , statistics , physics , engineering , combinatorics , mechanical engineering , decoding methods , process (computing) , operating system
The authors give a simple, constructive proof that the lens condition implies the factor price equalization condition when there are only two factors. Taking stock of the conditions under which the lens condition is equivalent to the factor price equalization condition, there are the conditions of two factors or two goods or two countries, or the condition that the rank of the factor‐use matrix is equal to the number of goods. It is shown that, in an essential sense, there are no other such conditions.