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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.

Suggested Citation

  • Hakan Yilmazkuday, 2011. "Understanding Interstate Trade Patterns," Working Papers 1104, Florida International University, Department of Economics.
  • Handle: RePEc:fiu:wpaper:1104
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    File URL: http://casgroup.fiu.edu/pages/docs/3501/1311369363_11-04.pdf
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Understanding Interstate Trade Patterns
      by Hakan Yilmazkuday in Hakan Yilmazkuday's Blog on 2016-12-20 04:17:00

    Citations

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    Cited by:

    1. Hakan Yilmazkuday, 2011. "Agglomeration And Trade: State‐Level Evidence From U.S. Industries," Journal of Regional Science, Wiley Blackwell, vol. 51(1), pages 139-166, February.
    2. Antoine Gervais & J. Bradford Jensen, 2013. "The Tradability of Services: Geographic Concentration and Trade Costs," NBER Working Papers 19759, National Bureau of Economic Research, Inc.
    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. Yilmazkuday, Hakan, 2015. "Importer-specific elasticities of demand: Evidence from U.S. exports," International Review of Economics & Finance, Elsevier, vol. 35(C), pages 228-234.
    5. Hakan Yilmazkuday, 2014. "Mismeasurement of Distance Effects: The Role of Internal Location of Production," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 992-1015, November.
    6. Lukas Albrecht & Trevor Tombe, 2016. "Internal trade, productivity and interconnected industries: A quantitative analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 237-263, February.
    7. repec:clg:wpaper:2014-03 is not listed on IDEAS
    8. Hakan Yilmazkuday, 2017. "A Solution to the Missing Globalization Puzzle by Non-CES Preferences," Review of International Economics, Wiley Blackwell, vol. 25(3), pages 649-676, August.
    9. Yilmazkuday, Hakan, 2009. "Distribution of Consumption, Production and Trade within the U.S," MPRA Paper 16361, University Library of Munich, Germany.
    10. Wrona, Jens, 2015. "Border Effects without Borders," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113060, Verein für Socialpolitik / German Economic Association.
    11. Yilmazkuday, Hakan, 2014. "Gasoline prices, transport costs, and the U.S. business cycles," Journal of Economic Dynamics and Control, Elsevier, vol. 45(C), pages 165-179.
    12. Xing, Weibo & Whalley, John, 2014. "The Golden Tax Project, value-added tax statistics, and the analysis of internal trade in China," China Economic Review, Elsevier, vol. 30(C), pages 448-458.
    13. Yilmazkuday, Hakan, 2014. "Price dispersion across US districts of entry," Economics Letters, Elsevier, vol. 123(3), pages 361-365.
    14. Choi, Chi-Young & Choi, Horag, 2014. "Does distance reflect more than transport costs?," Economics Letters, Elsevier, vol. 125(1), pages 82-86.
    15. 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.
    16. Wrona, Jens, 2015. "Border effects without borders: What divides Japan's internal trade?," DICE Discussion Papers 185, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    17. Yilmazkuday, Hakan, 2016. "Constant versus variable markups: Implications for the law of one price," International Review of Economics & Finance, Elsevier, vol. 44(C), pages 154-168.
    18. 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).

    More about this item

    Keywords

    Trade Patterns; Elasticity of Substitution; Elasticity of Distance; the United States;

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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