Estimating the Hov Model with Technology Differences Using Disaggregated Labor Skills for the United States and the United Kingdom
Posted: 17 Aug 1998
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: Suggested Citation