Why is Distance Important for Hospital Choice? Separating Home Bias From Transport Costs*

2021 ◽  
Vol 69 (2) ◽  
pp. 338-368
Author(s):  
Devesh Raval ◽  
Ted Rosenbaum
Keyword(s):  
Home Bias ◽  
Transport Costs ◽  
Hospital Choice

scholarly journals The Home-Market Effect and Bilateral Trade Patterns

2004 ◽  
Vol 94 (4) ◽  
pp. 1108-1129 ◽  
Author(s):  
Gordon H Hanson ◽  
Chong Xiang
Keyword(s):  
Monopolistic Competition ◽  
Bilateral Trade ◽  
Home Bias ◽  
Differentiated Products ◽  
Home Market ◽  
Transport Costs ◽  
Trade Patterns ◽  
Market Effect ◽  
Market Effects ◽  
Home Market Effects

We develop a monopolistic-competition model of trade with many industries to examine how home-market effects vary with industry characteristics. Industries with high transport costs and more differentiated products tend to be more concentrated in large countries than industries with low transport costs and less differentiated products. We test this prediction using a difference-in-difference gravity specification that controls for import tariffs, importing-country remoteness, home bias in demand, and the tendency for large countries to export more of all goods. We find strong evidence of home-market effects whose intensity varies across industries in a manner consistent with theory.

Can Multistage Production Explain the Home Bias in Trade?

2010 ◽  
Vol 100 (1) ◽  
pp. 364-393 ◽  
Author(s):  
Kei-Mu Yi
Keyword(s):  
International Trade ◽  
Home Bias ◽  
Trade Costs ◽  
Significant Fraction ◽  
Empirical Literature ◽  
Vertical Specialization ◽  
Border Effect ◽  
Transport Costs ◽  
Production Stage ◽  
Multistage Production

A large empirical literature finds that there is too little international trade and too much intranational trade to be rationalized by observed international trade costs, such as tariffs and transport costs. This paper investigates whether a model in which the nature of production can change in response to trade costs—a framework with multistage production—can better explain the home bias in trade. The calibrated model can explain about two-fifths of the Canada border effect, about two-and-one-half times that of a model with one production stage. The model also explains a significant fraction of Canada-US “back-and-forth,” or vertical specialization, trade. (JEL F11, F13, F14)

Determinants of Brazilian Exports by Levels of Technological Intensity: A Gravity Model Analysis Using the PPML Estimator

2019 ◽  
Vol 10 (9) ◽  
pp. 861-879
Author(s):  
Edson Roberto Vieira ◽  
◽  
Daniel Henrique Alves Reis ◽  
Keyword(s):  
International Market ◽  
Positive Influence ◽  
Gravity Models ◽  
Transport Costs ◽  
Consumer Market ◽  
Technology Products ◽  
The Us ◽  
Trading Partners ◽  
Negative Impacts ◽  
Technological Intensity

The objective of this study is to analyze the determinants of Brazilian exports by levels of technological intensity in the period 2000-2015. Gravity models were estimated for total of the exports and for each type of exports by levels of technological intensity, using the PPML-estimator. The study indicates that there is a process of concentration of Brazilian exports in low technology and medium-low technology products, at the same period in which China's share of total Brazilian shipments abroad grew. Estimates of empirical gravity models have shown that the income and size of the consumer market of Brazil’s trading partners seem to have the greatest positive influence on the Brazilian exports. Indications of this study are that the Brazil should continue to diversify its trading partners to minimize the impacts of a possible reduction of the economic growth of large trading partners (such as China and the US) on its exports and increase its exports of products with greater technological intensity. The results also highlight the need for Brazil to make greater efforts to increase its competitiveness in the international market to reduce the negative impacts of transport costs on the final prices of products exported by the country.

Case Study: Maximizing Business Performance by Optimizing Supply Chain Of LNG-C Distribution of 9 Gas Power Plants with A Capacity of 780 MW in Eastern Indonesia

2020 ◽  
Author(s):  
A. D. Wara
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Power Plants ◽  
Total Power ◽  
First Year ◽  
Eastern Region ◽  
Transport Costs ◽  
Logistics Optimization ◽  
The Government ◽  
Milk Run

The Government of Indonesia plans to build 9 gas power plants in South Kalimantan, South Sulawesi and Southeast Nusa Tenggara with a total power capacity of 780 MW with an estimated actual gas demand of 46.56 MMSCFD which are planned to be supplied by the Bontang terminal, DS-LNG, Masela LNG, and Tangguh LNG. LNG-C logistics optimization is needed to get the best transportation scenario regarding the eastern region which consists of scattered islands and inadequate infrastructure. This study analyzes and evaluates the best-case scenarios by comparing the time and cost variables. The process of planning the supply chain starts from determining the upstream-downstream distribution scheme and then calculates the shipping distance which results in the determination of the quantity, capacity and shipping of the LNG-C. Based on the analysis and calculation of the logistics, it is concluded that there are 3 divisions of clusters of Kalimantan-Sulawesi, NTT and NTB having estimated needs in a row of 18.06, 18.8, and 9.7 MMSCFD with the Milk-Run transportation method. Logistics optimization results show that scenario 1 has an efficiency value of 87% with an LNG-C transport capacity of 0.35 MMSCF, a roundtrip cruise time of 8.6 days and the number of shipments is 36 / year. The detailed analysis of costs in scenario A is 1-2 USD / MMBTU for the milk and run transportation method, 1.49-1.73 USD / MBTU for LNG-C transport costs, and regasification costs which are 1.0-3.7 USD / MMBTU. Based on the above results it can be calculated that the price of gas in the first year of implementation was 13.4 USD / MMBTU, so the total value below this supply chain was Rp.8,812,876,800.00. Therefore, this idea was created as a solution for the initial steps for the utilization of the domestic natural gas distribution

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