How Wide Is the Firm Border?
Enghin Atalay (),
Mary Jialin Li and
No 23777, NBER Working Papers from National Bureau of Economic Research, Inc
We examine the within- and across-firm shipment decisions of tens of thousands of goods-producing and distributing establishments. This allows us to quantify the normally unobservable forces that determine firm boundaries; which transactions are mediated by ownership control, as opposed to contracts or markets. We find firm boundaries to be an economically significant barrier to trade: having an additional vertically integrated establishment in a given destination zip code has the same effect on shipment volumes as a 40 percent reduction in distance. We then calibrate a multisector trade model to quantify the economy-wide implications of transacting across vs. within firm boundaries.
JEL-codes: D2 F14 L2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cta
Note: IO ITI PR
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published as Enghin Atalay & Ali Hortaçsu & Mary Jialin Li & Chad Syverson, 2019. "How Wide Is the Firm Border?*," The Quarterly Journal of Economics, vol 134(4), pages 1845-1882.
Downloads: (external link)
Journal Article: How Wide Is the Firm Border? (2019)
Working Paper: How Wide Is the Firm Border? (2019)
Working Paper: How Wide is the Firm Border? (2018)
Working Paper: How Wide Is the Firm Border? (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:23777
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().