Andersson, Jonas () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration) Jörnsten, Kurt () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration) Strandenes, Siri Pettersen () (Dept. of Economics, Norwegian School of Economics and Business Administration) Ubøe, Jan () (Dept. of Finance and Management Science, Norwegian School of Economics and Business Administration)
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In this paper we study bulk shipping of coal between the central regions in the world. We compare the performance of cost-minimizing models with a gravity model approach. The main finding in the paper is that cost minimizing models provide relative poor fits to data. A simple one parameter gravity model, however, provides very satisfactory fits to observed behaviour.
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Paper provided by Department of Finance and Management Science, Norwegian School of Economics and Business Administration in its series Discussion Papers with number
2008/26.
Length: 13 pages Date of creation: 10 Feb 2009 Date of revision: Handle: RePEc:hhs:nhhfms:2008_026
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