Price Dispersion across U.S. Districts of Entry

Hakan Yilmazkuday

No 1405, Working Papers from Florida International University, Department of Economics

Abstract: This paper investigates the price dispersion of U.S. imports at the good-category level across U.S. districts of entry. Although there is a large heterogeneity across goods, on average, the implied markups of a simple model explain about 31% of the price dispersion, while the implied marginal costs of production explain about 69%; the effects of trade costs, for which we have actual data, are almost none. The results are robust to the consideration of possible endogeneity problems, multiplicative versus additive trade costs, and measurement errors in prices.

Keywords: Price Dispersion; Variable Markups; Trade Costs (search for similar items in EconPapers)
JEL-codes: F12 F13 F14 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2014-03
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://economics.fiu.edu/research/pdfs/2014_working_papers/1405.pdf First version, 2014 (application/pdf)

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Journal Article: Price dispersion across US districts of entry (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1405

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