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来源类型Working Paper
规范类型报告
DOI10.3386/w18122
来源IDWorking Paper 18122
Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints.
Fernando Borraz; Alberto Cavallo; Roberto Rigobon; Leandro Zipitría
发表日期2012-06-01
出版年2012
语种英语
摘要The "border effect" literature finds that political borders have a very large impact on relative prices, implicitly adding several thousands of miles to trade. In this paper we show that the standard empirical specification suffers from selection bias, and propose a new methodology based on quantile regressions. Using a novel data set from Uruguay, we apply our procedure to measure the segmentation introduced by city borders. City borders should matter little for trade. We find that when the standard methodology is used, two supermarkets separated by 10 kilometers across two different cities have the same price dispersion as two supermarkets separated by 30 kilometers within the same city; so the city border triples the distance. When our methodology is used, the city border effect becomes insignificant. We further test our methodology using online prices for the largest supermarket chain in the country, and show that the "online border" is equivalent to the average distance from the online warehouse to each of the offline stores.
主题International Economics ; International Macroeconomics
URLhttps://www.nber.org/papers/w18122
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/575798
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GB/T 7714
Fernando Borraz,Alberto Cavallo,Roberto Rigobon,et al. Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints.. 2012.
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