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dc.contributor.authorSteinwender, Claudia
dc.date.accessioned2019-03-26T12:58:49Z
dc.date.available2019-03-26T12:58:49Z
dc.date.issued2018-03
dc.identifier.issn0002-8282
dc.identifier.urihttp://hdl.handle.net/1721.1/121088
dc.description.abstractThis paper exploits a unique historical experiment to estimate how information frictions distort international trade: the establishment of the transatlantic telegraph in 1866. I use newly collected data on cotton prices, trade, and information flows from historical newspapers and find that the average and volatility of the transatlantic price difference fell after the telegraph, while average trade flows increased and became more volatile. Using a trade model in which exporters use the latest news about a foreign market to forecast expected prices, I estimate the efficiency gains of the telegraph to be equivalent to 8 percent of export value.en_US
dc.publisherAmerican Economic Associationen_US
dc.relation.isversionofhttp://dx.doi.org/10.1257/aer.20150681en_US
dc.rightsArticle is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use.en_US
dc.sourceAmerican Economic Associationen_US
dc.titleReal Effects of Information Frictions: When the States and the Kingdom Became Uniteden_US
dc.typeArticleen_US
dc.identifier.citationSteinwender, Claudia. “Real Effects of Information Frictions: When the States and the Kingdom Became United.” American Economic Review 108, no. 3 (March 2018): 657–696.en_US
dc.contributor.departmentSloan School of Managementen_US
dc.contributor.mitauthorSteinwender, Claudia
dc.relation.journalAmerican Economic Reviewen_US
dc.eprint.versionFinal published versionen_US
dc.type.urihttp://purl.org/eprint/type/JournalArticleen_US
eprint.statushttp://purl.org/eprint/status/PeerRevieweden_US
dc.date.updated2019-02-28T17:17:56Z
dspace.orderedauthorsSteinwender, Claudiaen_US
dspace.embargo.termsNen_US
mit.licensePUBLISHER_POLICYen_US


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