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The capital value of the search for trading matches

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posted on 06.08.2009 by Huw Edwards
This note explores the value of search capital in interim matches in the outsourcing trade, by extending Rauch and Casella s (2003) framework to a dynamic model of matching and searching. On provisional calculations, the sunken cost of this search imposes a similar order of magnitude trade barrier to most tariffs, and would be expected to affect both the intensive and extensive margins of trade.

History

School

  • Business and Economics

Department

  • Economics

Publisher

© Loughborough University

Version

VoR (Version of Record)

Publication date

2009

Notes

This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2009_08.html

ISSN

1750-4171

Book series

Loughborough University. Department of Economics. Discussion Paper Series;WP 2009_08

Language

en

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