Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/330282 
Year of Publication: 
2024
Series/Report no.: 
CITP Working Paper No. 013
Publisher: 
Centre for Inclusive Trade Policy (CITP), University of Sussex Business School, Brighton
Abstract: 
We develop a new approach to measure the sources of geographic goods market segmentation. Our cost-of-living approach uncovers the relative importance of price and product availability differences, while accounting for taste differences. We implement our methodology on regionally disaggregated consumer goods data in the EU and US. The analysis reveals that price, and especially, product availability differences are much larger between than within European countries, and are only marginally larger between than within US states. Our findings imply that US states are geographically integrated, whereas EU countries remain segmented, due to trade frictions that mainly relate to fixed costs.
Subjects: 
Geographic market integration
LOP deviations
Product availability differences
JEL: 
D12
F15
R32
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.