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SUFFICIENCY OF THE LENS CONDITION FOR FACTOR PRICE EQUALIZATION
Author(s) -
Qi Ling
Publication year - 2007
Publication title -
pacific economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.34
H-Index - 33
eISSN - 1468-0106
pISSN - 1361-374X
DOI - 10.1111/j.1468-0106.2007.00352.x
Subject(s) - counterexample , equalization (audio) , lens (geology) , economics , through the lens metering , mathematical economics , econometrics , mathematics , optics , physics , statistics , discrete mathematics , decoding methods
. Demiroglu and Yun (1999) and Wong and Yun (2003) gave counterexamples to show that the lens condition is not sufficient for factor price equalization. However, they leave the following two important problems untouched: why the lens condition is not sufficient for factor price equalization in general; and whether counterexamples can be given only in a very special case. This paper extends these papers to a framework without two input vectors being proportional to explain why the lens condition loses sufficiency and gives a lot of counterexamples which include those provided in above papers as special cases.