| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5057634 | Economics Letters | 2017 | 5 Pages |
Abstract
â¢Define and estimate a model of insurance costs in international shipping.â¢Results show distance is not a parameter of insurance costs.â¢Transportation costs are per-unit rather than ad-valorem.â¢GDP per capita is a weak instrumental variable in transportation cost models.
We estimate insurance costs for international shipments, and determine that distance does not affect insurance costs. This corroborates empirical observations of the Alchian-Allen effect. We also show that GDP per capita is endogenously related to unit value through insurance costs.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Adrian Wolanski,