Trade costs in empirical New Economic Geography
Abstract
Trade costs are a crucial element of New Economic Geography (NEG) models. Without trade costs there is no role for geography. In empirical NEG studies the unavailability of direct trade cost data calls for the need to approximate these trade costs by introducing a trade cost function. In doing so, hardly any attention is paid to the (implicit) assumptions and empirical consequences of the particular trade cost function used. Based on a...
Paper Details
Title
Trade costs in empirical New Economic Geography
Published Date
Aug 1, 2010
Journal
Volume
89
Issue
3
Pages
485 - 511
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