Heckscher/Ohlin Model

  • Print
User Rating:  / 1

For a country that is exposed to the international market the user can choose different production and consumption points for two goods (cheese and wine) to optimize utility. Results are displayed in a diagram. 

Based on the chosen production for one good (cheese) the simulation calculates the production of the other good (wine) and displays the result on the Production Possibility Curve. Similar the chosen consumption combination is displayed on the Trade Line. Resulting imports, exports, and utility are calculted.

The simulation can be used to support instructors when teaching as it automatically updates the diagram and economic variables for different scenarios. Students can use the simulation as a exercise to find an optimum for different international price relations.

The simulation runs best in 1280 x 800 resolution (currently a few other resolution setting lead to graphic problems)  

Type of Simulation: Runs directly in browser

About the author of the simulation:

Carsten Lange is professor of economics at California State Polytechnic University, Pomona. His web page is available at www.csupomona.edu/~clange