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Asymmetric Trading Costs and Ancient Greek Cities

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  • Chen, Yuxian
  • Ioannides, YANNIS
  • Rauch, Ferdinand

Abstract

Asymmetric transport costs arise when shipping times from point i to point j differ from shipping from point j to i. We show that such asymmetric transport costs predict distinct patterns of location in a class of models using Dixit-Stiglitz preferences. We then study factors affecting the location of cities in ancient Hellas. Prevailing winds create an environment of asymmetric trade costs in ancient Greece. We show that predictions of these models are consistent with the location of ancient cities.

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  • Chen, Yuxian & Ioannides, YANNIS & Rauch, Ferdinand, 2022. "Asymmetric Trading Costs and Ancient Greek Cities," CEPR Discussion Papers 17204, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17204
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    1. Maarten Bosker & Eltjo Buringh & Jan Luiten van Zanden, 2013. "From Baghdad to London: Unraveling Urban Development in Europe, the Middle East, and North Africa, 800–1800," The Review of Economics and Statistics, MIT Press, vol. 95(4), pages 1418-1437, October.
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