Understanding Interstate Trade Patterns

No 1104, Working Papers from Florida International University, Department of Economics

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.

Keywords: Trade Patterns; Elasticity of Substitution; Elasticity of Distance; the United States (search for similar items in EconPapers)
JEL-codes: F12 R12 R32 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2011-07
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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http://casgroup.fiu.edu/pages/docs/3501/1311369363_11-04.pdf First version, 2011 (application/pdf)

Related works:
Journal Article: Understanding interstate trade patterns (2012)
Working Paper: Understanding Interstate Trade Patterns (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:fiu:wpaper:1104

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