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Intra-national Home Bias: Some Explanations

Russell Hillberry and David Hummels ()

No 9022, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Wolf (2000) demonstrates that trade within the U.S. appears substantially impeded by state borders. We revisit this finding with improved data. We show that much intra-national home bias can be explained by wholesaling activity. Shipments by wholesalers are much more localized within states than shipments from manufacturing establishments. Controlling for relative prices and the use of actual, rather than imputed, shipment distances also reduces home bias estimates.

JEL-codes: F15 R12 (search for similar items in EconPapers)
Date: 2002-06
Note: ITI
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Published as Hillberry, Russell and David Hummels. "Intranational Home Bias: Some Explanations," Review of Economics and Statistics, 2003, v85(4,Nov), 1089-1092.

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