@techreport{NBERw9052,
 title = "Factor Price Equalization in the UK?",
 author = "Andrew B. Bernard and Stephen Redding and Peter K. Schott and Helen Simpson",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "9052",
 year = "2002",
 month = "July",
 URL = "http://www.nber.org/papers/w9052",
 abstract = {This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region-industry factor quality differences and variation in production technology across industries. We test relative factor price equalization across regions of the UK. Although the UK is small and densely-populated, we find evidence of statistically significant and economically important departures from relative factor price equalization. Our estimates suggest three distinct relative factor price areas with a clear spatial structure. We explore explanations for these findings, including multiple cones of diversification, region-industry technology differences, agglomeration and increasing returns to scale.},
}