Estimating the Hov Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom

Posted: 17 Aug 1998

See all articles by Keith E. Maskus

Keith E. Maskus

University of Colorado at Boulder - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute)

Allan Webster

Anglia Polytechnic University

Abstract

We develop a version of the Heckscher-Ohlin-Vanek (HOV) theorem with parametric technological differences for application to U.S. and U.K. data on the factor contents of trade, output, and consumption. We construct a matched set of input-output tables, consumption and trade vectors, and labor occupations. The data allow estimation of factor-specific and industry-specific productivity differences for incorporation into a second-stage econometric approach to assessing the HOV model. The data support a general model with technical differences and measurement error. The implied ratio of U.S.-to-U.K. expenditure levels exceeds the ratio based on published GNP data.

JEL Classification: F14

Suggested Citation

Maskus, Keith E. and Webster, Allan, Estimating the Hov Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom. Available at SSRN: https://ssrn.com/abstract=114753

Keith E. Maskus (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309
United States
303-492-7588 (Phone)
303-492-8960 (Fax)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Allan Webster

Anglia Polytechnic University ( email )

East Road
Cambridge CB1 1PT
United Kingdom

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