Estimating Distribution Costs with the Eaton-Kortum Model

Research output: Contribution to journalArticle

Abstract

Economists have mainly relied on input-output tables to calculate domestic trade costs for a relatively small number of developed countries. In this work we use an augmented Eaton-Kortum model to estimate the distribution costs of a group of consumption goods for 60 countries, which include both developing and developed countries. Our results show that developing countries are subject to much higher distribution costs, and that reductions in the distribution costs can result in large welfare gains.

Original languageEnglish (US)
Pages (from-to)653-665
Number of pages13
JournalReview of Development Economics
Volume19
Issue number3
DOIs
StatePublished - Jan 1 2015

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costs
cost
developing world
economist
welfare
developing country
distribution
Group
developed country
goods
domestic trade
consumption

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development

Cite this

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title = "Estimating Distribution Costs with the Eaton-Kortum Model",
abstract = "Economists have mainly relied on input-output tables to calculate domestic trade costs for a relatively small number of developed countries. In this work we use an augmented Eaton-Kortum model to estimate the distribution costs of a group of consumption goods for 60 countries, which include both developing and developed countries. Our results show that developing countries are subject to much higher distribution costs, and that reductions in the distribution costs can result in large welfare gains.",
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Estimating Distribution Costs with the Eaton-Kortum Model. / Yang, Xuebing.

In: Review of Development Economics, Vol. 19, No. 3, 01.01.2015, p. 653-665.

Research output: Contribution to journalArticle

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