Oviedo, P. Marcelo; Singh, Rajesh - Society for Economic Dynamics - SED - 2006
resolve the quantity puzzle by introducing non-traded distribution costs in the retailing of traded goods. In a standard two …-good model traded output and traded consumption, by definition, are identical goods. With distribution costs, traded output and … amount of non-traded goods. Thus, effectively, the model with distribution costs can be viewed as a model without …