TY  - BOOK
AU  - Bernard,Andrew B.
AU  - Robertson,Raymond
AU  - Schott,Peter K.
ED  - National Bureau of Economic Research.
TI  - A Note on the Empirical Implementation of the Lens Condition
T2  - NBER working paper series
PY  - 2005///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - July 2005; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w11448
UR  - http://dx.doi.org/10.3386/w11448
ER  -