Intranational Home Bias: Some Explanations

Russell Hillberry; David Hummels

doi:10.1162/003465303772815970

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Intranational Home Bias: Some Explanations

Russell Hillberry¹; David Hummels²

¹ United States International Trade Commission · ² Purdue University West Lafayette

The Review of Economics and Statistics 2003

Wolf demonstrates that trade within the United States appears substantially impeded by state borders. We revisit this finding with improved data. We show that much intranational home bias can be explained by wholesaling activity. Shipments by wholesalers are much more localized within states than shipments from manufacturing establishments. Controlling for relative prices and the use of actual, rather than imputed, shipment distances also reduces home bias estimates.

DOI: 10.1162/003465303772815970
Volume: 85 (4)
Pages: 1089-1092
Language: en
Export: BibTeX
Sources: openalex crossref