BORDERS, GEOGRAPHY, AND OLIGOPOLY: EVIDENCE FROM THE WIND TURBINE INDUSTRY

• 成果类型: Article
• 署名作者: Cosar, A. Kerem; Grieco, Paul L. E.; Tintelnot, Felix
• 署名单位: University of Chicago; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Princeton University
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00485
• 发表日期: 2015-07
• 页码: 623-637
• 关键词: trade; MARKET; prices; COSTS; aggregation; distance; gravity; models; export; entry

摘要

Using a microlevel data set of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of exporting for each firm. In the data, firms' market shares drop precipitously at the border. We find that 40% to 50% of the gap can be attributed to national border costs. Counterfactual analysis indicates that eliminating national border frictions would increase total welfare in the wind turbine industry by 4% in Denmark and 6% in Germany.