12 Pages Posted: 21 Jun 2002
Date Written: June 2002
Wolf (2000) demonstrates that trade within the U.S. appears substantially impeded by state borders. We revisit this finding with improved data. We show that much intra-national home bias can be explained by wholesaling activity. Shipments by wholesalers are much more localized within states than shipments from manufacturing establishments. Controlling for relative prices and the use of actual, rather than imputed, shipment distances also reduces home bias estimates.
Suggested Citation: Suggested Citation
Hillberry, Russell H. and Hummels, David L., Intra-National Home Bias: Some Explanations (June 2002). NBER Working Paper No. w9022. Available at SSRN: https://ssrn.com/abstract=316801