The Heckscher-Ohlin Model with Monopolistic Competition and General Preferences

Federico Etro ()

No 2017:10, Working Papers from Department of Economics, University of Venice "Ca' Foscari"

Abstract: I extend the neoclassical 2x2x2 trade model to general preferences over a variety of goods supplied under monopolistic competition in a sector while the other sector is perfectly competitive. Non-homothetic preferences deliver pricing to market, incomplete pass-through and market size effects. Under realistic conditions, the differentiated goods are sold at a higher price in the capital-abundant country.

Keywords: Monopolistic competition; Heckscher-Ohlin Model; non-homothetic preferences; international trade (search for similar items in EconPapers)
JEL-codes: F11 F12 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2017
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.unive.it/web/fileadmin/user_upload/dip ... P_DSE_etro_10_17.pdf First version, anno (application/pdf)

Related works:
Journal Article: The Heckscher–Ohlin model with monopolistic competition and general preferences (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ven:wpaper:2017:10

Access Statistics for this paper

More papers in Working Papers from Department of Economics, University of Venice "Ca' Foscari" Contact information at EDIRC.
Bibliographic data for series maintained by Sassano Sonia ().