Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/71556
Authors: 
Bernard, Abdrew B.
Redding, Stephen
Schott, Peter K.
Simpson, Helen
Year of Publication: 
2002
Series/Report no.: 
IFS Working Papers, Institute for Fiscal Studies (IFS) 02/11
Abstract: 
This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region-industry factor quality differences and variation in production technology across industries. We test relative factor price equalization across regions of the UK. Although the UK is small and densely-populated, we find evidence of statistically significant and economically important departures from relative factor price equalization. Our estimates suggest three distinct relative factor price areas with a clear spatial structure. We explore explanations for these findings, including multiple cones of diversification, region-industry technology differences, agglomeration and increasing returns to scale.
Subjects: 
Relative Factor Prices
Diversification Cones
Technology
Economic Geography
JEL: 
F11
F14
C14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
643.93 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.