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A Note on the Empirical Implementation of the Lens Condition / Andrew B. Bernard, Raymond Robertson, Peter K. Schott.
- Format:
- Book
- Author/Creator:
- Bernard, Andrew B.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w11448.
- NBER working paper series no. w11448
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2005.
- Summary:
- Deardorff [Journal of International Economics 36 (1994) 167-175] offers an intuitively appealing test for factor price equality (FPE). He demonstrates that FPE is impossible if the set (i.e., lens) of points defined by regional factor abundance vectors does not lie within the set of points defined by goods' input intensities. This note demonstrates that empirical implementation of the lens condition is problematic if the "true" number of either goods or regions is unknown. We show that satisfaction of the lens condition is more likely when goods are relatively disaggregate compared to regions.
- Notes:
- Print version record
- July 2005.
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