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Timeliness, Trade and Agglomeration.

Abstract:

An important element of the cost of distance is time taken in delivering final and intermediategoods. We argue that time costs are qualitatively different from direct monetary costs such asfreight charges. The difference arises because of uncertainty. Unsynchronised deliveries candisrupt production, and delivery time can force producers to order components beforedemand and cost uncertainties are resolved. Using several related models we show that thiscan cause clustering of component producti...

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Publisher:
Centre for Economic Performance, LSE
Host title:
CEP Discussion Papers
Series:
CEP Discussion Papers
Publication date:
2004-01-01
Language:
English
UUID:
uuid:619fdea7-320e-49e4-aa5d-50775c495b31
Local pid:
oai:economics.ouls.ox.ac.uk:11761
Deposit date:
2011-08-16

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