Vertical Product Differentiation and the Value of Time

Udayan Roy ()

International Economic Journal, 1998, vol. 12, issue 3, 97-111

Abstract: This paper presents a model of international trade in goods that are ranked by quality. The model differs from existing theories of trade under vertical product differentiation in several ways. The main difference is in the way quality is modeled. But this paper also has different positive implications for the pattern of trade and it provides a theoretical explanation for Leontief Paradox-type empirical findings. The model indicates that several of the most important empirical challenges faced by the Heckscher-Ohlin-Vanek model can be dealt with by taking into account the quality aspect of traded goods.[F1]

Date: 1998
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DOI: 10.1080/10168739800000032

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