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Rising trade costs? Agglomeration and trade with endogenous transaction costs

Duranton, Gilles and Storper, Michael ORCID: 0000-0002-8354-792X (2005) Rising trade costs? Agglomeration and trade with endogenous transaction costs. CEP Discussion Paper (683). London School of Economics and Political Science. Centre for Economic Performance, 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
Divisions: Centre for Economic Performance
Geography & Environment
Subjects: H Social Sciences > HF Commerce
JEL classification: 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
Date Deposited: 24 Jul 2008 09:09
Last Modified: 15 Sep 2023 23:00
URI: http://eprints.lse.ac.uk/id/eprint/19898

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