Behrens, Kristian; Picard, Pierre M. - Center for Operations Research and Econometrics … - 2008
transport services for shipping manufacturedgoods across regions and freight rates are determined endogenously to clear … raises freight rates toserve foreign markets, thus generating an additional dispersion force. We show that a moreequal … equilibrium distribution of firms prevails when freight rates are endogenouslydetermined than when they are exogenous and that …