The capital value of the search for trading matches.

This note explores the value of search capital in interfirm matches in the outsourcing trade, by extending Rauch and Casella's (2003) framework to a dynamic model of matching and searching. On provisional calculations, the sunken cost of this search imposes a similar order of magnitude trade barrier to most tariffs, and would be expected to affect both the intensive and extensive margins of trade.

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Year of publication:	2009-07
Authors:	Edwards, T. Huw
Institutions:	School of Business and Economics, Loughborough University
Subject:	Trade \| search \| matching \| capital

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Series:	Discussion Paper Series.
Type of publication:	Book / Working Paper
Language:	English
Classification:	F00 - International Economics. General ; F12 - Models of Trade with Imperfect Competition and Scale Economies ; F13 - Commercial Policy; Protection; Promotion; Trade Negotiations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004993630