Skip Nav Destination
Close Modal
Update search
NARROW
Format
Journal
TocHeadingTitle
Date
Availability
1-1 of 1
Paul L. E. Grieco
Close
Follow your search
Access your saved searches in your account
Would you like to receive an alert when new items match your search?
Sort by
Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (2015) 97 (3): 623–637.
Published: 01 July 2015
Abstract
View articletitled, Borders, Geography, and Oligopoly: Evidence from the Wind Turbine Industry
View
PDF
for article titled, Borders, Geography, and Oligopoly: Evidence from the Wind Turbine Industry
Using a microlevel data set of wind turbine installations in Denmark and Germany, we estimate a structural oligopoly model with cross-border trade and heterogeneous firms. Our approach separately identifies border-related from distance-related variable costs and bounds the fixed cost of exporting for each firm. In the data, firms’ market shares drop precipitously at the border. We find that 40% to 50% of the gap can be attributed to national border costs. Counterfactual analysis indicates that eliminating national border frictions would increase total welfare in the wind turbine industry by 4% in Denmark and 6% in Germany.
Includes: Supplementary data