Incidence Theory, Specific Factors and the Augmented Heckscher‐Ohlin Model*

Abstract

The concepts of ‘true protection’ and the ‘incidence of protection’ are potentially very useful for the evaluation of commercial policy. These concepts have been developed in the context of a model in which the production functions are implicit. The present paper develops the analysis of true protection in models in which the factors of production are explicitly identified. The paper finds that the Heckscher‐Ohlin model may not be an appropriate vehicle for the analysis of the effects of tariffs, while the specific‐factors model facilitates a fuller evaluation of, and permits additional insights into, the incidence of protection.

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