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

Abstract

We are grateful to the participants of the following conferences in 2009 and 2010; International Conference on Agents Interactions, Market Interdependencies and Market Instabilities in Paris, the Pacific Rim Conference in Kyoto, Taipei International Conference on Growth, Trade and Dynamics, the Spring Meeting of the Japanese Economic Association at Chiba University, and the Micro Economics and Game Theory Workshop at Kyoto University, and especially, to Jess Benhabib, Ichiroh Daitoh, Chiaki Hara, Yunfang Hu, Ronald W. Jones, Atsushi Kajii, Takashi Kunimoto, Yoshinori Kurokawa, Kazuo Mino, Tadashi Sekiguchi, Alan Venditti, and Henry Wan Jr. for their useful comments on the earlier version of the paper. We thank the anonymous referee for constructive comments on the paper. The first author thanks the KIER for hospitality during his visit, where this work was initiated.