Understanding interstate trade patterns

Hakan Yilmazkuday

Journal of International Economics, 2012, vol. 86, issue 1, 158-166

Abstract: This paper models and estimates bilateral trade patterns of U.S. states in a CES framework and identifies the elasticity of substitution across goods, the elasticities of substitution across varieties of each good, and the good-specific elasticities of distance by using markup values obtained from the production side. Compared to the international trade literature, the elasticity of substitution estimates are lower across both goods and varieties, while the elasticity of distance estimates are higher. Although home-bias effects at the state level are significant, there is evidence for decreasing effects over time.

Keywords: Trade patterns; Elasticity of substitution; Elasticity of distance; The United States (search for similar items in EconPapers)
JEL-codes: F12 R12 R32 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (43)

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Related works:
Working Paper: Understanding Interstate Trade Patterns (2011)
Working Paper: Understanding Interstate Trade Patterns (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:86:y:2012:i:1:p:158-166

DOI: 10.1016/j.jinteco.2011.08.015

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