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Consumption efficiency hypothesis and the HOS model: Some counterintuitive results

Chaudhuri, Sarbajit et al.
Munich Personal RePEc Archive · Reports
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human-developmentincome-distributionmigration
We show how accommodation of the consumption efficiency hypothesis can explain the existence of involuntary unemployment in the two-by-two Heckscher-Ohlin-Samuelson (HOS) model. Although the workers consume both the commodities their nutritional efficiency depends on the consumption of one commodity
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