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

  • Rahul Giri

    (Instituto Tecnologico Autonomo de Mexico)

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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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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