Comments on: Is Spain a lumpy country? I like the paper. Thanks for drawing my attention to lumpiness. As I take it, this is a paper that tests for the working of the HO model. In particular, whether FPE occurs under the fulfilment of the “lens condition”. Some suggestions… By Rafael Moner

Comments on: Is Spain a lumpy country? Factor Price Equalization Theorem (Samuelson, 1949) Suppose that two countries are engaged in free trade, having identical technologies but different factor endowments. If both countries are diversified and FIR do not occur, then the factor prices (w, r) are equalized across these countries.

Comments on: Is Spain a lumpy country? What can make FPE fail?  Anything that prevents the prices of the goods from being equalized across countries: tariffs, transportation costs,…  Specialization of one of the countries. This is more likely to occur if the composition of the countries ‘ factor endowments is significantly different.  Factor intensity reversals.

Comments on: Is Spain a lumpy country? What can make FPE fail?  If the countries have access to different technologies.  If there are more factors of production than traded goods.

Comments on: Is Spain a lumpy country? I would incorporate these qualifications in the sense that lumpiness may no longer matter but there might be other reasons explaining that FPE fails. In fact, and as a curiosity, how does empirical work check for all the HO modelling assumptions?