Showing 1 - 10 of 14
This article investigates whether the distance between origin and destination has played an increased role in shaping … 2012 are years of economic recession. The analytical tool employed is a gravity model. Our results document that distance …
Persistent link: https://www.econbiz.de/10011202961
distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals. …
Persistent link: https://www.econbiz.de/10010877921
This paper derives a micro-founded gravity equation in general equilibrium based on a translog demand system that allows for endogenous markups and substitution patterns across goods. In contrast to standard CES-based gravity equations, trade is more sensitive to trade costs if the exporting...
Persistent link: https://www.econbiz.de/10008596576
This paper uses a gravity framework to investigate the effects of distance as well as subnational and national borders … border effects stem from the metropolitan level rather than state. Second, border and distance effects decrease with the age … distance effects are interestingly increasing. Finally, we find that (assignee) self-citations and aggregation bias are two …
Persistent link: https://www.econbiz.de/10005000385
Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and that exchange rate fluctuations explain about one-third of the volatility increase. In re-evaluating the border effect, this study shows that cross-country heterogeneity in price...
Persistent link: https://www.econbiz.de/10005765810
argues that distance (however defined) is no longer a dominant characteristic of the world economy, or will cease to be so in …. We disagree, and with us many other economists (see, for example, Leamer, 2006). Distance dominates all aspects of … distance. Furthermore, there is little evidence of income convergence. Using various methods and data sets, we show that many …
Persistent link: https://www.econbiz.de/10005766052
We use retail transaction prices for a multinational retailer to examine the extent and permanence of violations of the law of one price (LOOP). For identical products, we find typical deviations of twenty to fifty percent, though there is muted evidence for convergence over time. Such...
Persistent link: https://www.econbiz.de/10005181286
Power market integration is analyzed in a two countries model with nationally regulated firms and costly public funds. If generation costs between the two countries are too similar negative business-stealing outweighs efficiency gains so that following integration welfare decreases in both...
Persistent link: https://www.econbiz.de/10010556079
We develop a model of vertical pricing in which an original manufacturer sets wholesale prices in two markets integrated at the distributor level by parallel imports (PI). In this context we show that if competition policy requires uniform wholesale prices across locations it would push retail...
Persistent link: https://www.econbiz.de/10005765782
Using 25 years of monthly data on individual Japanese retail prices, we study the behavior of product-specific Law of One Price (LOP) deviations. Individual tradable products, compared with nontradables, are more likely to have different distributions of LOP deviations across cities. Their...
Persistent link: https://www.econbiz.de/10005765970