Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs

Gilles Duranton and Michael Storper

No 4933, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: 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.

Keywords: Transaction costs; Trade costs; Transport costs; Agglomeration; Vertically linked industries (search for similar items in EconPapers)
JEL-codes: D23 D24 R12 (search for similar items in EconPapers)
Date: 2005-02
New Economics Papers: this item is included in nep-geo and nep-int
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Citations: View citations in EconPapers (15)

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Related works:
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Journal Article: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2008)
Working Paper: Rising Trade Costs? Agglomeration and Trade with Endogenous Transaction Costs (2005)
Working Paper: Rising trade costs? Agglomeration and trade with endogenous transaction costs (2005)
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