{"title":"The Heckscher-Ohlin Model with Monopolistic Competition and General Preferences","authors":"Federico Etro","doi":"10.2139/ssrn.2998169","DOIUrl":null,"url":null,"abstract":"I extend the neoclassical 2x2x2 trade model to general preferences over a variety of goods supplied under monopolistic competition in a sector while the other sector is perfectly competitive. Non-homothetic preferences deliver pricing to market, incomplete pass-through and market size effects. Under realistic conditions, the differentiated goods are sold at a higher price in the capital-abundant country.","PeriodicalId":85755,"journal":{"name":"The Malayan economic review : the journal of the Economic Society of Singapore, the Department of Economics and Statistics and the Economic Research Centre of the University of Singapore","volume":"70 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2017-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"7","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"The Malayan economic review : the journal of the Economic Society of Singapore, the Department of Economics and Statistics and the Economic Research Centre of the University of Singapore","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.2998169","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 7
Abstract
I extend the neoclassical 2x2x2 trade model to general preferences over a variety of goods supplied under monopolistic competition in a sector while the other sector is perfectly competitive. Non-homothetic preferences deliver pricing to market, incomplete pass-through and market size effects. Under realistic conditions, the differentiated goods are sold at a higher price in the capital-abundant country.
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