A note on the empirical implementation of the lens condition
By: Andrew B. Bernard, Raymond Robertson, Peter K. Schott.
Contributors: Robertson, Raymond, 1969-; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11448; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11448.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Regional economic disparities -- Mathematical models.
Description: "Deardorff [Journal of International Economics 36 (1994) 167-175] offers an intuitively appealing test for factor price equality (FPE).  He demonstrates that FPE is impossible if the set (i.e., lens) of points defined by regional factor abundance vectors does not lie within the set of points defined by goods' input intensities.  This note demonstrates that empirical implementation of the lens condition is problematic if the "true" number of either goods or regions is unknown.  We show that satisfaction of the lens condition is more likely when goods are relatively disaggregate compared to regions"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.