Abstract

http://ssrn.com/abstract=1082611
 
 

References (35)



 
 

Citations (6)



 


 



Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs


Gilles Duranton


London School of Economics & Political Science (LSE) - Department of Geography and Environment; Centre for Economic Policy Research (CEPR)

Michael Storper


University of California, Los Angeles (UCLA) - Department of Urban Planning


Canadian Journal of Economics/Revue canadienne d'économique, Vol. 41, Issue 1, pp. 292-319, February/février 2008

Abstract:     
While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs that seeks to replicate features from the machinery industry, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade. The subtle relationship between (endogenous) transport costs and the sensitivity of trade to distance is also explored.

Number of Pages in PDF File: 28

JEL Classification: D23, R12

Accepted Paper Series


Date posted: January 11, 2008  

Suggested Citation

Duranton, Gilles and Storper, Michael, Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs. Canadian Journal of Economics/Revue canadienne d'économique, Vol. 41, Issue 1, pp. 292-319, February/février 2008. Available at SSRN: http://ssrn.com/abstract=1082611 or http://dx.doi.org/10.1111/j.1365-2966.2008.00464.x

Contact Information

Gilles Duranton (Contact Author)
London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )
Houghton Street
WC2A 2AE London
United Kingdom
+44 20 7955 7604 (Phone)
+44 20 7955 7412 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Michael Storper
University of California, Los Angeles (UCLA) - Department of Urban Planning ( email )
Box 951656
Los Angeles, CA 90095
United States
Feedback to SSRN


Paper statistics
Abstract Views: 288
Downloads: 21
References:  35
Citations:  6

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.407 seconds