Distance and Political Boundaries: Estimating Border Effects under Inequality Constraints

The ‘border effects’ literature finds that political boundaries have a large impact on relative prices across locations. In this paper, we show that the standard empirical specification suffers from selection bias and propose a new methodology based on binned-quantile regressions. We use a novel mic...

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Bibliographic Details
Main Authors: Borraz, Fernando, Zipitria, Leandro, Cavallo, Alberto F., Rigobon, Roberto
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: John Wiley & Sons 2016
Online Access:http://hdl.handle.net/1721.1/104886
https://orcid.org/0000-0002-9701-3507
https://orcid.org/0000-0002-9054-3804