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Understanding Interstate Trade Patterns

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  • Hakan Yilmazkuday

    ()
    (Department of Economics, Florida International University)

Abstract

This paper models and estimates bilateral trade patterns of U.S. states in a CES framework and identi?es the elasticity of substitution across goods, elasticity of substitution across varieties of each good, and the good-speci?c elasticity of distance measures by using markup values obtained from the production side. Compared to empirical 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 signi?cant, there is evidence for decreasing effects over time.

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File URL: http://casgroup.fiu.edu/pages/docs/3501/1311369363_11-04.pdf
File Function: First version, 2011
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Bibliographic Info

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 1104.

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Length: 26 pages
Date of creation: Jul 2011
Date of revision:
Handle: RePEc:fiu:wpaper:1104

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Web page: http://casgroup.fiu.edu/Economics/
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Keywords: Trade Patterns; Elasticity of Substitution; Elasticity of Distance; the United States;

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Cited by:
  1. 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.
  2. Hakan Yilmazkuday, 2014. "Price Dispersion across U.S. Districts of Entry," Working Papers 1405, Florida International University, Department of Economics.
  3. Hakan Yilmazkuday, 2010. "Agglomeration and Trade: State-Level Evidence from U.S. Industries," DETU Working Papers 1001, Department of Economics, Temple University.
  4. 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.
  5. Yilmazkuday, Hakan, 2009. "Distribution of Consumption, Production and Trade within the U.S," MPRA Paper 16361, University Library of Munich, Germany.
  6. Hakan Yilmazkuday, 2014. "Gasoline Prices, Transport Costs, and the U.S. Business Cycles," Working Papers 1409, Florida International University, Department of Economics.
  7. 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).

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