Trade, growth, and convergence in a dynamic Heckscher-Ohlin model
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Trade, growth, and convergence in a dynamic Heckscher-Ohlin model by Timothy Jerome Kehoe

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Published by National Bureau of Economic Research in Cambridge, Mass .
Written in English

Subjects:

  • Heckscher-Ohlin principle -- Mathematical models

Book details:

Edition Notes

StatementTimothy J. Kehoe, Claustre Bajona.
SeriesNBER working paper series -- no. 12567., Working paper series (National Bureau of Economic Research) -- working paper no. 12567.
ContributionsBajona, Claustre., National Bureau of Economic Research.
The Physical Object
Pagination48 p. :
Number of Pages48
ID Numbers
Open LibraryOL17631633M
OCLC/WorldCa74174412

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stop convergence and even cause divergence. We make this point using a dynamic Heckscher-Ohlin model — a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model — with infinitely lived consumers where international borrowing and . ABSTRACT This paper studies the properties of a dynamic Heckscher-Ohlin model-a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model-with infinitely lived consumers where international borrowing and. Claustre Bajona & Timothy Kehoe, "Code files for "Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model"," Computer Codes , Review of Economic Dynamics. Claustre Bajona & Timothy J. Kehoe, "Trade, growth, and convergence in a dynamic Heckscher-Ohlin model," Staff Report , Federal Reserve Bank of Minneapolis. "Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model,".

Trade, growth, and convergence in a dynamic Heckscher-Ohlin model. By Claustre Bajona and Timothy J. Kehoe. Get PDF ( KB) Abstract. In models in which convergence in income levels across closed countries is driven by faster accumulation of a productive factor in the poorer countries, opening these countries to trade can stop convergence and. In two-sector dynamic trade models with infinitely-lived agents in the presence of factor–price-equalization, convergence of aggregate capital-labor ratios and incomes does not occur. The Euler equation implies equal growth rate of consumption in all trading economies. With finite lives capital-labor ratios do get equalized.   The Heckscher Ohlin Model is also called the 2x2x2 model, implies that two countries are needed for trade, engaging one another in trade with two goods, and with two homogeneous production factors. The number of goods is equal to the production factors, which makes expansion within this model difficult.   Both the convergence and the diversification results represent a departure from the deterministic version of the dynamic Heckscher–Ohlin model. The paper also highlights the role of the period-by-period trade balance constraint, a standard feature of deterministic models, in a model with country-specific shocks.

Bajona, C. & Kehoe, T. J. (). Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin model. Federal Reserve Bank of Minneapolis -Research Department Staff Report Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model Claustre Bajona, Timothy J. Kehoe. NBER Working Paper No. Issued in October NBER Program(s):Economic Fluctuations and Growth Program This paper studies the properties of a dynamic Heckscher-Ohlin model - a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model Cited by: T1 - Trade, growth, and convergence in a dynamic Heckscher-Ohlin model. AU - Bajona, Claustre. AU - Kehoe, Timothy J. PY - /7/1. Y1 - /7/1. We make this point using a dynamic Heckscher-Ohlin model-a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model-with infinitely lived consumers. Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model. By Claustre Bajona and Timothy J. Kehoe. Download PDF ( KB) Abstract. This paper studies the properties of a dynamic Heckscher-Ohlin model - a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model - with infinitely lived.