UC Davis Econ in the News
2008-03-20 · Original WordPress address
Davis Professor Paul Bergin's (with Fed economist Reuven Glick) paper (pdf) on trade costs and oil prices is discussed at econbrowser.
My favorite line in the abstract: "This time-variation [in price dispersion, a measure of trade "thickness"] is difficult to explain in terms of the standard gravity equation variables common in the literature, as these tend not to vary much over time." The gravity model estimates trade costs using distance between countries (and some other stuff)...