Rising trade costs? Agglomeration and trade with endogenous transaction costs

Duranton, Gilles; and Storper, MichaelORCID logo (2005) Rising trade costs? Agglomeration and trade with endogenous transaction costs. [Working paper]
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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.
Item Type Working paper
Keywords Transaction costs,trade costs,transport costs,agglomeration,vertically linked industries
Departments Centre for Economic Performance
Geography and Environment
Date Deposited 24 Jul 2008 09:09
URI https://researchonline.lse.ac.uk/id/eprint/19898

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