Showing 1 - 10 of 11
If one ranks cities by population, the rank of a city is inversely related to its size, a well-documented phenomenon … known as Zipf's Law. Further, the growth rate of a city's population is uncorrelated with its size, another well … size distributions of cities and countries are similar. But theories that explain the size-distribution of cities do not …
Persistent link: https://www.econbiz.de/10005497861
asymmetric regions and costly trade. As shown by extensive simulations on random networks, local market size better explains a …
Persistent link: https://www.econbiz.de/10011165639
In this Paper we show that the main empirical findings about firm diversification and performance are actually consistent with the optimal behavior of a firm that maximizes shareholder value. In our model, diversification allows a firm to explore better productive opportunities while taking...
Persistent link: https://www.econbiz.de/10005667077
How much of China’s recent economic performance can be attributed to market-oriented reforms introduced in the last two decades? A long-run perspective may be important for understanding the process of economic development occurring today. This Paper compares the integration of rice markets in...
Persistent link: https://www.econbiz.de/10005136759
shows that borders and distance impede trade by much more than tariffs or transports costs can explain. We therefore … inadequate information manifest themselves most strongly at national borders and over distance. …
Persistent link: https://www.econbiz.de/10011145400
This paper derives a micro-founded gravity equation based on a translog demand system that allows for flexible substitution patterns across goods. In contrast to the standard CES-based gravity equation, translog gravity generates an endogenous trade cost elasticity. Trade is more sensitive to...
Persistent link: https://www.econbiz.de/10011083929
It is generally assumed that distance in the gravity model strictly reflects frictions impeding bilateral trade … trade. This paper investigates the hypothesis that if we control for distance in the ordinary sense, differences North … influence of distance that has been occurring since World War II. This last hypothesis receives confirmation as well. Finally …
Persistent link: https://www.econbiz.de/10005792460
. Service trade, however, like goods trade, is subject to strong distance effects, implying that the remote supply of services … large sample of countries and different categories of service trade. We find that distance costs are high but are declining …
Persistent link: https://www.econbiz.de/10005666777
which the coefficient of distance is allowed to change over time. In a standard specification, in which transport costs are … proxied only, it is found paradoxically that the absolute value of the elasticity of bilateral trade to distance has been … significantly increasing. The result is attributed to a relatively larger decline in costs independent of distance (such as handling …
Persistent link: https://www.econbiz.de/10005791432
assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i … distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if … understood as reducing distance, leads to more integration. …
Persistent link: https://www.econbiz.de/10005791570