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The tip of the iceberg: a quantitative framework for estimating trade costs

Moxnes, Andreas; Irarrazabal, Alfonso; Opromolla, Luca David
Journal article, Peer reviewed
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LOCKED until 28.09.2016 due to copyright restrictions (820.1Kb)
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http://hdl.handle.net/11250/2375239
Utgivelsesdato
2015
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  • Scientific articles [1667]
Originalversjon
Review of Economics and Statistics, 97(2015)4:777-792   10.1162/REST_a_00517
Sammendrag
Casual empiricism suggests that additive trade costs, such as quotas, per-unit

tariffs, and, in part, transportation costs, are prevalent. In spite of this, we have

no broad and systematic evidence of the magnitude of these costs. We develop a

new empirical framework for estimating additive trade costs from standard firmlevel

trade data. Our results suggest that additive barriers are on average 14

percent, expressed relative to the median price. The point estimates are strongly

correlated with common proxies for trade costs. Using our micro estimates, we

show that a reduction in additive trade costs produces much higher welfare gains

and growth in trade flows than a similar reduction in multiplicative trade costs.
Beskrivelse
This is the accepted and refereed manuscript of the article.
Utgiver
MIT Press
Tidsskrift
Review of Economics and Statistics

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