| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 963173 | Journal of International Economics | 2011 | 12 Pages |
Abstract
⺠We model a competitive transport sector in a model of trade and geography. ⺠We compare the equilibrium spatial allocation of production under exogenous and endogenous freight rates. ⺠We show that freight rate asymmetries work against the agglomeration of firms in the larger region. ⺠Freight rate responses to trade imbalances provide a strong dispersion force. ⺠We prove these results both in the footloose capital and the core-periphery models.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Kristian Behrens, Pierre M. Picard,