Factor Price Differences in a General Equilibrium Model of Trade and Imperfect Competition

Onur Koska and Frank Staehler
Authors registered in the RePEc Author Service: Frank Stähler

MPRA Paper from University Library of Munich, Germany

Abstract: Except for the famous Dornbusch-Fischer-Samuelson (DFS) models, most general equilibrium models of trade rely on factor price equalization. The DFS models demonstrate the gains from trade without factor price equalization under perfect competition. This paper employs a general equilibrium model of oligopolistic competition which implies distortions both at the intensive and extensive margin. If factor prices do not equalize, imperfect competition will not reverse the specialization pattern. However, mutual gains from trade are not guaranteed, but one country may be worse off by trade.

Keywords: Oligopolistic competition; general equilibrium; international trade; factor price differences (search for similar items in EconPapers)
JEL-codes: D50 F12 (search for similar items in EconPapers)
Date: 2015-02-11
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Research in Economics 2.69(2015): pp. 248-259

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Related works:
Journal Article: Factor price differences in a general equilibrium model of trade and imperfect competition (2015)
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