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Local Costs of Distribution, International Trade Costs and Micro Evidence on the Law of One Price

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  • Rahul Giri

    (Instituto Tecnologico Autonomo de Mexico)

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    Abstract

    percent of the variation in that dispersion. The magnitude of trade costs and local distribution costs is consistent with the price dispersion observed for an average retail product, but the heterogeneity in trade costs, and in distribution costs, cannot account for observed heterogeneity in the dispersion of law of one price deviations.

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    File URL: http://www.economicdynamics.org/meetpapers/2009/paper_652.pdf
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    Paper provided by Society for Economic Dynamics in its series 2009 Meeting Papers with number 652.

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    Date of creation: 2009
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    Handle: RePEc:red:sed009:652

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    1. Michael E. Waugh, 2010. "International Trade and Income Differences," American Economic Review, American Economic Association, vol. 100(5), pages 2093-2124, December.
    2. Matthias Lutz, 2004. "Pricing in Segmented Markets, Arbitrage Barriers, and the Law of One Price: Evidence from the European Car Market," Review of International Economics, Wiley Blackwell, vol. 12(3), pages 456-475, 08.
    3. Robert C. Feenstra & Robert E. Lipsey & Haiyan Deng & Alyson C. Ma & Hengyong Mo, 2005. "World Trade Flows: 1962-2000," NBER Working Papers 11040, National Bureau of Economic Research, Inc.
    4. Jonathan Haskel & Holger C. Wolf, 2001. "The Law of One Price - A Case Study," CESifo Working Paper Series 428, CESifo Group Munich.
    5. Robert E. Cumby, 1996. "Forecasting Exchange Rates and Relative Prices with the Hamburger Standard: Is What You Want What You Get With McParity?," NBER Working Papers 5675, National Bureau of Economic Research, Inc.
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