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Understanding interstate trade patterns

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  • Yilmazkuday, Hakan

Abstract

This paper models and estimates bilateral trade patterns of U.S. states in a CES framework and identifies the elasticity of substitution across goods, the elasticities of substitution across varieties of each good, and the good-specific elasticities of distance by using markup values obtained from the production side. Compared to the international trade literature, the elasticity of substitution estimates are lower across both goods and varieties, while the elasticity of distance estimates are higher. Although home-bias effects at the state level are significant, there is evidence for decreasing effects over time.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of International Economics.

Volume (Year): 86 (2012)
Issue (Month): 1 ()
Pages: 158-166

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Handle: RePEc:eee:inecon:v:86:y:2012:i:1:p:158-166

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Web page: http://www.elsevier.com/locate/inca/505552

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Keywords: Trade patterns; Elasticity of substitution; Elasticity of distance; The United States;

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Citations

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Cited by:
  1. Hakan Yilmazkuday, 2014. "Gasoline Prices, Transport Costs, and the U.S. Business Cycles," Working Papers 1409, Florida International University, Department of Economics.
  2. Hakan Yilmazkuday, 2010. "Agglomeration and Trade: State-Level Evidence from U.S. Industries," DETU Working Papers 1001, Department of Economics, Temple University.
  3. Delina E. Agnosteva & James E. Anderson & Yoto V. Yotov, 2014. "Intra-national Trade Costs: Measurement and Aggregation," NBER Working Papers 19872, National Bureau of Economic Research, Inc.
  4. Diaz-Lanchas, Jorge & Llano, Carlos & Zofío, José Luis, 2013. "Trade margins, transport cost thresholds and market areas: Municipal freight flows and urban hierarchy," Working Papers in Economic Theory 2013/10, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
  5. Yilmazkuday, Hakan, 2009. "Distribution of Consumption, Production and Trade within the U.S," MPRA Paper 16361, University Library of Munich, Germany.
  6. Kyoko Hirose & Yushi Yoshida, 2012. "Intra-National Regional Heterogeneity in International Trade: Foreign Growth on Exports and Production of Domestic Regions," Discussion Papers 54, Kyushu Sangyo University, Faculty of Economics.
  7. Yilmazkuday, Hakan, 2014. "Price dispersion across US districts of entry," Economics Letters, Elsevier, vol. 123(3), pages 361-365.

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