Premium
Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model *
Author(s) -
CLAGUE CHRISTOPHER,
GREENAWAY DAVID
Publication year - 1994
Publication title -
economic record
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.365
H-Index - 42
eISSN - 1475-4932
pISSN - 0013-0249
DOI - 10.1111/j.1475-4932.1994.tb01823.x
Subject(s) - context (archaeology) , production (economics) , economics , production model , computer science , macroeconomics , geography , archaeology
The concepts of ‘true protection’ and the ‘incidence of protection’ are potentially very useful for the evaluation of commercial policy. These concepts have been developed in the context of a model in which the production functions are implicit. The present paper develops the analysis of true protection in models in which the factors of production are explicitly identified. The paper finds that the Heckscher‐Ohlin model may not be an appropriate vehicle for the analysis of the effects of tariffs, while the specific‐factors model facilitates a fuller evaluation of, and permits additional insights into, the incidence of protection.