The Performance of the Heckscher-Ohlin-Vanek Model in Predicting Endogenous Policy Forces at the Individual Level

Edward Balistreri

Canadian Journal of Economics, 1997, vol. 30, issue 1, 1-17

Abstract: This study tests the hypothesis that agents base their opinions about trade liberalization on the distribution effects as predicted by the Heckscher-Ohlin-Vanek (HOV) model. The HOV model is utilized to derive the probable effect of a liberalization move on the returns to different Canadian occupations. The predicted effect is then compared with the opinions that Canadians with known occupations held about the proposed Canadian-U.S. Free Trade Agreement of 1988. It is found that these agents took positions that were generally consistent with the prediction from the HOV model.

Date: 1997
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