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Rising trade costs?: agglomeration and trade with endogenous transaction costs

By Gilles Duranton and Michael Storper

Abstract

While transport costs have fallen, the empirical evidence also points at rising total trade costs. In a model of industry location with endogenous transaction costs, we show how and under which conditions a decline in transport costs can lead to an increase in the total cost of trade

Topics: HF Commerce
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Year: 2005
OAI identifier: oai:eprints.lse.ac.uk:19898
Provided by: LSE Research Online

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