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Dec 1, 2017 · The iceberg model is equivalent to the composite trade cost model when markets clear at the regional level. • We propose to define market clearing at the trade relation level to depart from the iceberg model. • With relational market clearing adjustments to shocks are qualitatively different from the iceberg model. •
Mar 3, 2020 · Iceberg transport costs are a key ingredient of modern trade and economic geography models. Using detailed information on Boston’s nineteenth-century global ice trade, we show that the cost...
Jan 26, 2010 · In this paper we build a heterogeneous firm model of trade that allows for both iceberg and per-unit costs. An important theoretical finding is that these within-
Iceberg transport costs are one of the main ingredients of modern trade and economic geography models: transport costs are modelled by assuming that a fraction of the goods shipped “melts in transit”. In this paper, we investigate whether the iceberg assumption applies to the costs of transporting the only good that literally melts in transit: ice.
This result suggests that inferring (iceberg) trade costs from trade flows using gravity models, as in Anderson and van Wincoop (2004), may overstate trade barriers.
Apr 8, 2018 · Using detailed information on Boston’s nineteenth-century global ice trade, we show that ice (berg) transport costs in practice were a combination of a true ad-valorem iceberg cost: melt in transit, and freight, (off)loading and insurance costs.
Iceberg transport costs are a key ingredient of modern trade and economic geography models. Using detailed information on Boston’s nineteenth-century global ice trade, we show that the cost of shipping the only good that truly melts in transit is not well-proxied by this assumption.
