|
EconStor >
Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/24867
|
| | |
| Title: | | Technological change, trade, and endogenous factor endowments  |
| Authors: | | Gundlach, Erich de Vaal, Albert |
| Issue Date: | | 2008 |
| Citation: | | [Series:] Kiel working paper [No.:] 1471 [Editor:] Kiel Inst. for the World Economy, Kiel |
| Series/Report no.: | | Kiel working paper 1471 |
| Abstract: | | Factor endowments are usually taken as given in trade theoretical analyses of technological change. We use the Deardorff (1974) diagram to show how the steady state capital labor ratio endogenously adjusts to technology shocks in a two-sector small open economy, an effect which has largely been neglected in trade theory literature. We show that ignoring the endogeneity of the capital labor ratio with respect to technology shocks leads to biased predictions of changes in sectoral production and trade. Imposing stylized facts of growth as restrictions, we assess the relative size of the implied prediction bias that appears to matter for empirical studies of trade. |
| Subjects: | | Deardorff diagram technology shock factor endowments factor bias sector bias |
| JEL: | | F11 O41 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des IfW Kieler Arbeitspapiere, IfW Economists Online
|
| Files in This Item:
| |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/24867
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|