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When trade cost are charged on a per unit basis, higher quality goods tend to be traded more (Allen-Alchian effect). I examine whether this effect has led to the mismeasurement of import prices.
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This page is a summary of: Specific Trade Costs, Quality, and Import Prices, February 2015, W.E. Upjohn Institute for Employment Research,
DOI: 10.17848/9780880994903.vol1ch4.
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