How Wide is the Firm Border?

Enghin Atalay, Ali Hortacsu, Chad Syverson and Mary Li
Additional contact information
Mary Li: Compass Lexecon

No 124, 2018 Meeting Papers from Society for Economic Dynamics

Abstract: 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 multi- sector trade model to quantify the economy-wide implications of transacting across vs. within firm boundaries.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2018/paper_124.pdf (application/pdf)

Related works:
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? (2017)
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) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed018:124

Access Statistics for this paper

More papers in 2018 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().