CEPII, Recherche et Expertise sur l'economie mondiale
International Trade, Quality Sorting and Trade Costs: The Case of Cognac
Charlotte Emlinger & Viola Lamani validate empirically the Alchian and Allen effect based on a direct and physical rather than perceived definition of product quality, during a long time-span covering almost forty-seven years of Cognac export flows. They also assess empirically the impact of customs protection on trade flows by quality by distinguishing between per-unit and ad-valorem tariffs. Results confirm the Alchian and Allen effect when analyzing the time variation of trade costs through containerization.
Trade & Globalization
Competitiveness & Growth
Emerging Countries
Environment & Natural Resources
Money & Finance
Economic Policy