Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires … the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs … specification used. This paper shows that the specification of trade costs matters. Estimations of a NEG wage equation for a sample …

the framework of ‘the new quantitative trade model.’ We complement theory with a simple two-stage estimating procedure …

regarding the impact of e.g. diminishing trade costs are based on these simple models. When doing empirical or policy work these …

This paper develops a two-country model of intraindustry trade with trade costs, which can be reduced by public … investment in an international infrastructure capital, the stock of which accumulates over time. Depending on the trade costs and … country is affected by these trade patterns. Taking the relationship between trade costs and national welfare into …

mechanism considered in the paper is based on that multiproduct shipments allow splitting fixed costs per shipment across many … products and, therefore, reducing total shipment costs. As a result, more developed countries tend to have lower fixed costs …-product shipments in determining shipping costs …

of immobile residents. Investment is costly: Quadratic installation and de-installation costs limit the mobility of … and effects of changes in installation costs are ambiguous …