Asymmetric Trading Costs and Ancient Greek Cities

52 Pages Posted: 5 Sep 2023

See all articles by Yuxian Chen

Yuxian Chen

Brown University, Department of Economics

Yannis M. Ioannides

Tufts University

Ferdinand Rauch

Heidelberg University - Alfred Weber Institute for Economics

Multiple version iconThere are 2 versions of this paper

Abstract

Asymmetric transport costs arise when shipping times from point $i$ to point $j$ differ from shipping from point $j$ to $i$. We show that such asymmetric transport costs predict distinct patterns of location in a class of models using Dixit-Stiglitz preferences, where advantage in import potential is more beneficial than that in export potential. We then study factors affecting the location of cities in Hellas, ancient Greece. Prevailing winds create an environment of asymmetric trade costs in ancient Greece. We show that predictions of these models are consistent with the location of ancient cities. We use 2SLS methods to assess the role of market access measures in determining urban settlements and find significant differences between the coefficients for export and import market access.

Keywords: ancient urbanization, intercity trade, asymmetric trading costs, economic geography, spatial models, transportation networks, network centrality, systems of cities, market access, ancient Greek cities, ancient hellenic world.

Suggested Citation

Chen, Yuxian and Ioannides, Yannis M. and Rauch, Ferdinand, Asymmetric Trading Costs and Ancient Greek Cities. Available at SSRN: https://ssrn.com/abstract=4562280 or http://dx.doi.org/10.2139/ssrn.4562280

Yuxian Chen

Brown University, Department of Economics ( email )

Providence, RI
United States
02912 (Fax)

Yannis M. Ioannides (Contact Author)

Tufts University ( email )

177 College Avenue
Medford, MA 02155
United States
6176273294 (Phone)
6176273917 (Fax)

HOME PAGE: http://https://sites.tufts.edu/yioannides/

Ferdinand Rauch

Heidelberg University - Alfred Weber Institute for Economics ( email )

Grabengasse 14
Heidelberg, D-69117
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
36
Abstract Views
154
PlumX Metrics