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The capital value of the search for trading matches
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 UniversityVersion
- VoR (Version of Record)
Publication date
2009Notes
This is a working paper. It is also available at: http://ideas.repec.org/p/lbo/lbowps/2009_08.htmlISSN
1750-4171Book series
Loughborough University. Department of Economics. Discussion Paper Series;WP 2009_08Language
- en