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