Choi, Yo Chul; Hummels, David; Xiang, Chong - In: Journal of International Economics 78 (2009) 2, pp. 293-303
We examine a generalized version of Flam and Helpman [Flam, H., Helpman, E., 1987. Vertical Product Differentiation and North-South Trade. American Economic Review, 77, 810-822.] in which consumption prices for quality differentiated goods are rising in household income. We provide propositions...