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Abstract:![]()
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 ![]() 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. |
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