Abstract

http://ssrn.com/abstract=995540
 
 

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Production versus Transportation Technologies: Theory and Evidence


Hakan Yilmazkuday


Florida International University

April 2010


Abstract:     
The impacts of production and transportation technology changes are studied in a general-equilibrium trade model with an analytical solution where agents in each location produce different varieties of a common set of goods. Wages are equalized in nominal terms across locations, with differences in purchasing power offset by agents' preferences for particular locations in the initial steady-state. Instead of assuming iceberg costs, a transportation sector is modeled to allow an efficient distribution of workers across the production and transportation sectors. The counterfactuals have current and historical implications on the national, regional, and industrial variables of the U.S. economy.

Number of Pages in PDF File: 56

Keywords: Technology, Trade, Intermediate Inputs, Transportation

JEL Classification: R12, R13, R32

working papers series


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Date posted: June 22, 2007 ; Last revised: May 26, 2010

Suggested Citation

Yilmazkuday, Hakan, Production versus Transportation Technologies: Theory and Evidence (April 2010). Available at SSRN: http://ssrn.com/abstract=995540 or http://dx.doi.org/10.2139/ssrn.995540

Contact Information

Hakan Yilmazkuday (Contact Author)
Florida International University ( email )
Miami, FL 33199
United States
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References:  19

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