A dynamic two country Heckscher–Ohlin model with non-homothetic preferences

摘要: We examine the properties of a two-country dynamic Heckscher–Ohlin model that allows for preferences to be non-homothetic. show has continuum steady state equilibria under free trade, with initial conditions determining which equilibrium will attained. establish static theorem hold in state, and also hold. If both goods are normal, each country have unique autarkic all saddle points. consider case one good is inferior, this can lead multiple states, violations state. Furthermore, there may exist Pareto dominate other states. These states unstable if discount factors same country, although they exhibit indeterminacy differ.