01725cas a2200253 a 4500 AALejournalIMF005482 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871258 1018-5941 BD-DhAAL BD-DhAAL Shiells, Clinton. Dynamic Factor Price Equalization and International Income Convergence / Clinton Shiells, Joseph Francois. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (17 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper develops a tractable way to incorporate the micro structure of dual models of international trade into a standard class of dynamic open-economy macro models. In the process, it develops the concept of a dynamic factor price equalization set and an integrated intertemporal equilibrium. A number of results are obtained concerning trade, growth, and income convergence. Countries with higher capital/labor ratios may stay wealthier over time, both in the transition and in the new steady state. Real shocks in one country will be transmitted to the other country through the factor markets and traded goods prices. Mode of access: Internet Francois, Joseph. IMF Working Papers; Working Paper ; No. 2008/267 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/267/001.2008.issue-267-en.xml IMF e-Library