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Recent geography and trade empirical studies based on monopolistic competition [Hanson, 1998 ; Head and Ries, 1999 ; Hummels, 1999], suggest high levels of trade price elasticities (between 3 and11). However, direct estimations of price-elasticities in trade equations, using price indexes at...
Persistent link: https://www.econbiz.de/10005630731
This paper presents a new method that estimates the relative seller-concentration of an industry over both domestic and foreign sellers in 14 OECD countries, on the basis of a joint Structure-Performance and Brander-Krugman type model. Results suggest that overall seller-concentration is...
Persistent link: https://www.econbiz.de/10005630742