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The Ricardian model has zero income inequality. It is an inappropriate choice for this question. Rewrite using the H-O model. Discuss the assumptions of the model and whether/which they are appropriate, set up the model.

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The Ricardian model has zero income inequality. It is an inappropriate choice for this question. Rewrite using the H-O model. Discuss the assumptions of the model and whether/which they are appropriate, set up the model, discuss the intuitions for the main results of the model, show how it applies to income inequality, then look through the notes for the slides on income inequality to find empirical evidence, and discuss that evidence.


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