Asymmetric Trading Costs and Ancient Greek Cities

Yuxian Chen, Yannis Ioannides and Ferdinand Rauch

No 969, Economics Series Working Papers from University of Oxford, Department of Economics

Abstract: Asymmetric transport costs arise when shipping times from point i to point j differ from shipping from point j to i. We show that such asymmetric transport costs predict distinct patterns of location in a class of models using Dixit-Stiglitz preferences. We then study factors affecting the location of cities in ancient Hellas. Prevailing winds create an environment of asymmetric trade costs in ancient Greece. We show that predictions of these models are consistent with the location of ancient cities.

Date: 2022-04-07
New Economics Papers: this item is included in nep-int, nep-tre and nep-ure
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Working Paper: Asymmetric Trading Costs and Ancient Greek Cities (2022)
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