Cookies?
Centre for Vocational Education Research LSE RSS Email Facebook Twitter

Abstract:

cover
CEP Discussion Paper
 Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs
 Gilles Duranton and Michael Storper
April 2005
Paper No' CEPDP0683:
Full Paper (pdf)

JEL Classification: D23; D24; R12

Tags: transaction costs; trade costs; transport costs; agglomeration; vertically linked industries

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade.
 SHARE

Copyright © CVER & LSE 2015 - 2019  |  LSE, Houghton Street, London WC2A 2AE  |  Tel: +44(0)20 7955 7048  |  Email: CVER@lse.ac.uk  |   Site updated 22 March 2019
Use of this website is subject to, and implies acceptance of, its Terms of use (including Copyright and intellectual property, Privacy and data protection, and Accessibility).
The London School of Economics and Political Science is a School of the University of London. It is a charity and is incorporated in England as a company limited by guarantee under the Companies Acts (Reg no. 70527).The registered office address of the School is: The London School of Economics and Political Science, Houghton Street, London WC2A 2AE, UK; Tel: +44 (0)20 7405 7686