Working Paper: CEPR ID: DP17204
Authors: Yuxian Chen; Yannis M. Ioannides; Ferdinand Rauch
Abstract: Asymmetric transport costs arise when shipping times from point i to point j differ from shipping from point j to i. We show that such asymmetric transport costs predict distinct patterns of location in a class of models using Dixit-Stiglitz preferences. We then study factors affecting the location of cities in ancient Hellas. Prevailing winds create an environment of asymmetric trade costs in ancient Greece. We show that predictions of these models are consistent with the location of ancient cities.
Keywords: No keywords provided
JEL Codes: No JEL codes provided
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Asymmetric transport costs (L90) | City locations in ancient Greece (N93) |
| Asymmetric transport costs (L90) | Market access (L17) |
| Market access (L17) | Growth and size of poleis (R12) |
| Asymmetric shipping times (C69) | Market access (L17) |
| Higher market access (D40) | Larger city sizes (R12) |
| Seasonal variation in market access (Q11) | City location and size (R12) |