Rising trade costs?: agglomeration and trade with endogenous transaction costs

Duranton, Gilles and Storper, Michael (2005) Rising trade costs?: agglomeration and trade with endogenous transaction costs. CEPDP, 683. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753018225

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Abstract

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2005 the authors
Uncontrolled Keywords:	Transaction costs, trade costs, transport costs, agglomeration, vertically linked industries
Library of Congress subject classification:	H Social Sciences > HF Commerce
Journal of Economic Literature Classification System:	D - Microeconomics > D2 - Production and Organizations > D24 - Production; Cost; Capital and Total Factor Productivity; Capacity D - Microeconomics > D2 - Production and Organizations > D23 - Organizational Behavior; Transaction Costs; Property Rights R - Urban, Rural, and Regional Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade
Sets:	Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Geography and Environment
Rights:	http://www.lse.ac.uk/library/rights/LSERO.htm
Identification Number:	683
URL:	http://eprints.lse.ac.uk/19898/

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