Publications [#378413] of Felix Tintelnot

Journal Articles

1. Coşar, AK; Grieco, PLE; Tintelnot, F, Bias in estimating border- and distance-related trade costs: Insights from an oligopoly model, Economics Letters, vol. 126 (January, 2015), pp. 147-149 [doi]
   (last updated on 2026/01/16)

   Abstract:
   Regressions of price differences between locations in different countries without controlling for the local market structure and the location of origin will lead to a biased estimate of the impact of national boundaries. We demonstrate that non-classical measurement error in distance and unaccounted mark-up differences across countries are responsible for these biases. In a quantitative exercise based on our previous work (Coşar et al., 2014), we show that the estimated border effect with price difference regressions overstates the true border effect by a factor of two or more.