2
$\begingroup$

The paper says:

Smaller $\theta$ implies more heterogeneity, and thus larger comparative advantage, and hence stronger force for trade relative to resistance $d_{ni}$.

Would it be correct to therefore infer that geographical barriers are less important when $\theta$ is smaller? Or is this "technically incorrect"?

$\endgroup$
  • $\begingroup$ A link to the paper would be nice. $\endgroup$ – Herr K. Feb 12 '18 at 17:20

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.