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Estimating Equilibrium Models of Sorting Across Locations AgEcon
Bayer, Patrick; Timmins, Christopher.
With the growing recognition of the role played by geography in all sorts of economic problems, there is strong interest in measuring the size and scope of local spillovers (i.e., simple anonymous agglomeration or congestion effects, or more complicated interactions between individuals or firms of specific types). It is well-understood, however, that such spillovers cannot be distinguished from unobservable local attributes using just the observed location decisions of individuals or firms. We propose an empirical strategy for recovering estimates of spillovers in the presence of unobserved local attributes for a broadly applicable class of equilibrium sorting models. This approach relies on an instrumental variables strategy derived from the internal...
Tipo: Working or Discussion Paper Palavras-chave: Local spillovers; Location choice; Economic geography; Natural advantage; Social interactions; Network effects; Endogenous sorting; Discrete choice models; Agglomeration; Congestion; Institutional and Behavioral Economics; H7; R0; R2; R3.
Ano: 2003 URL: http://purl.umn.edu/28448
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RATIONAL INCOMPATIBILITY WITH INTERNATIONAL PRODUCT STANDARDS AgEcon
Barrett, Christopher B.; Yang, Yi-Nung.
This paper considers the incentives of firms to conform to an exogenous international product standard. Product standardization enables traditional, price-based international competition. But the existence of redesign costs or network effects creates market frictions that diminish the incentive to standardize if there already exists a different technology in an established market. This leads to multi-attribute competition between products and will generally reduce trade flows. Not only do incumbent firms using a different technology have an incentive to deviate from the international standard, but a host country government that is also concerned for the welfare of consumers who own the old technology has no incentive to enforce the international standard....
Tipo: Working or Discussion Paper Palavras-chave: Compatibility; International standardization; Network effects; Redesign costs; Technical barriers to trade; International Relations/Trade; F02; F13; F15; L11; L13; L51.
Ano: 1999 URL: http://purl.umn.edu/14597
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