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Trade costs are a 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...
Persistent link: https://www.econbiz.de/10010271847
Using a comprehensive international trade data set we investigate empirical regularities (known as Zipf’s Law or the rank-size rule) for the distribution of the interaction between countries as measured by revealed comparative advantage. Using the recently developed estimator by Gabaix and...
Persistent link: https://www.econbiz.de/10011349703
This paper investigates the effects of fixed versus flexible exchange rates on firms` location choices and on countries` specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are set...
Persistent link: https://www.econbiz.de/10012782289
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...
Persistent link: https://www.econbiz.de/10013316892
This paper investigates the effects of fixed versus flexible exchange rates on firms' location choices and on countries' specialization patterns. In a two-country, two-differentiated-goods monetary model, demand, supply, and monetary (as well as exchange rate) shocks arise after wages are set...
Persistent link: https://www.econbiz.de/10014079843
key insight that emerges is that the interaction between agglomeration economies and comparative advantage involves a … comparative advantage in sectors governed by this force whilst the impact of agglomeration economies is enhanced by trade cost … small economies is not only shaped by the primitives that determine agglomeration economies and comparative advantage but …
Persistent link: https://www.econbiz.de/10011543995
Persistent link: https://www.econbiz.de/10010222346
This study explores the relationship between agglomeration economies and industrial productivity between 1980 and 2010 …
Persistent link: https://www.econbiz.de/10012125545
This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and …
Persistent link: https://www.econbiz.de/10010340607
regional growth model, which links first time knowledge spillover, agglomeration, distribution of per capita productivity and … of knowledge affect agglomeration and distribution of per capita productivity. One of key findings is, that grasp of …
Persistent link: https://www.econbiz.de/10010294691