On the Distributive Effects of Terms of Trade Shocks : The Role of Non-tradable Goods

The Role of Non-tradable Goods

On the Distributive Effects of Terms of Trade Shocks : The Role of Non-tradable Goods
We introduce non-tradable goods to the Heckscher-Ohlin-Samuelson (HOS) model to study the distributive effects of terms of trade shocks. We show that the employment of resources in activities producing exclusively for the local market induces a crucial association between domestic spending and factor demand and prices, which is absent in the... READ MORE...

Publication date: October 2010
ISBN 9781455209415
$18.00

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