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Baumol-Tobin and the welfare costs of national security border delays

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  • Huang, Hui
  • Whalley, John

Abstract

We analyze the economic costs of national security related border delays in a Baumol-Tobin inventory theoretic framework. We show that there are social costs induced by behavioural responses to the delays, in addition to time costs at the border.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4PB6VRM-2/1/8b6cfd0687d72d9312c2dc2f79c22b09
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 99 (2008)
Issue (Month): 2 (May)
Pages: 290-292

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Handle: RePEc:eee:ecolet:v:99:y:2008:i:2:p:290-292

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  1. Edgar Cudmore & John Whalley, 2003. "Border Delays and Trade Liberalization," NBER Working Papers 9485, National Bureau of Economic Research, Inc.
  2. W. J. Baumol & H. D. Vinod, 1970. "An Inventory Theoretic Model of Freight Transport Demand," Management Science, INFORMS, vol. 16(7), pages 413-421, March.
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Cited by:
  1. Carlos Martí Sempere, 2011. "A Survey of the European Security Market," Economics of Security Working Paper Series 43, DIW Berlin, German Institute for Economic Research.

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