A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data
We use Kosovo’s transaction-level import value, tariff duties and transport cost data for very finely disaggregated products to test the Alchian–Allen conjecture. First, we show that the elasticity of freight costs to import prices is much lower than the unitary elasticity predicted by the iceberg t...
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| Format: | Journal Article |
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Taylor and Francis
2020
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| Online Access: | http://hdl.handle.net/10986/33768 |
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okr-10986-337682021-05-25T10:54:44Z A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data Choi, Jieun Minondo, Asier ALCHIAN-ALLEN CONJECTURE ICEBERG TRANSPORT COST TRANSACTION-LEVEL DATA FREIGHT COST TARIFFS IMPORT PRICE TRADE LOGISTICS We use Kosovo’s transaction-level import value, tariff duties and transport cost data for very finely disaggregated products to test the Alchian–Allen conjecture. First, we show that the elasticity of freight costs to import prices is much lower than the unitary elasticity predicted by the iceberg transport cost hypothesis. Second, we find that import unit values rise with transport costs and decline with ad valorem tariffs. Our results confirm the Alchian–Allen conjecture that per-unit transport costs reduce the price of high-quality varieties relative to low-quality varieties, raising their relative demand in high freight cost destinations. 2020-05-19T15:45:21Z 2020-05-19T15:45:21Z 2020-02 Journal Article Applied Economic Letters 1350-4851 http://hdl.handle.net/10986/33768 CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research Publications & Research :: Journal Article Europe and Central Asia Kosovo |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| topic |
ALCHIAN-ALLEN CONJECTURE ICEBERG TRANSPORT COST TRANSACTION-LEVEL DATA FREIGHT COST TARIFFS IMPORT PRICE TRADE LOGISTICS |
| spellingShingle |
ALCHIAN-ALLEN CONJECTURE ICEBERG TRANSPORT COST TRANSACTION-LEVEL DATA FREIGHT COST TARIFFS IMPORT PRICE TRADE LOGISTICS Choi, Jieun Minondo, Asier A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| geographic_facet |
Europe and Central Asia Kosovo |
| description |
We use Kosovo’s transaction-level import value, tariff duties and transport cost data for very finely disaggregated products to test the Alchian–Allen conjecture. First, we show that the elasticity of freight costs to import prices is much lower than the unitary elasticity predicted by the iceberg transport cost hypothesis. Second, we find that import unit values rise with transport costs and decline with ad valorem tariffs. Our results confirm the Alchian–Allen conjecture that per-unit transport costs reduce the price of high-quality varieties relative to low-quality varieties, raising their relative demand in high freight cost destinations. |
| format |
Journal Article |
| author |
Choi, Jieun Minondo, Asier |
| author_facet |
Choi, Jieun Minondo, Asier |
| author_sort |
Choi, Jieun |
| title |
A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| title_short |
A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| title_full |
A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| title_fullStr |
A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| title_full_unstemmed |
A Test of the Alchian-Allen Conjecture with Transaction-level Trade Data |
| title_sort |
test of the alchian-allen conjecture with transaction-level trade data |
| publisher |
Taylor and Francis |
| publishDate |
2020 |
| url |
http://hdl.handle.net/10986/33768 |
| _version_ |
1764479475791167488 |