Replication data for: Real Effects of Information Frictions: When the States and the Kingdom Became United
Principal Investigator(s): View help for Principal Investigator(s) Claudia Steinwender
Version: View help for Version V1
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dta | 10/20/2021 09:08:AM | ||
AER-2015-0681_onlineappendix_dofile.do | text/plain | 23.1 KB | 10/12/2019 12:26:AM |
AER-2015-0681_paper_dofile.do | text/plain | 28 KB | 10/12/2019 12:26:AM |
AER-2015-0681_readme.pdf | application/pdf | 81.6 KB | 10/12/2019 12:26:AM |
LICENSE.txt | text/plain | 14.6 KB | 10/12/2019 12:26:AM |
Project Citation:
Steinwender, Claudia. Replication data for: Real Effects of Information Frictions: When the States and the Kingdom Became United. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113066V1
Project Description
Summary:
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This 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.
Scope of Project
JEL Classification:
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D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
F14 Empirical Studies of Trade
L96 Telecommunications
N71 Economic History: Transport, Trade, Energy, Technology, and Other Services: U.S.; Canada: Pre-1913
N73 Economic History: Transport, Trade, Energy, Technology, and Other Services: Europe: Pre-1913
D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
F14 Empirical Studies of Trade
L96 Telecommunications
N71 Economic History: Transport, Trade, Energy, Technology, and Other Services: U.S.; Canada: Pre-1913
N73 Economic History: Transport, Trade, Energy, Technology, and Other Services: Europe: Pre-1913
Geographic Coverage:
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United States,
UK
Time Period(s):
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1865 – 1867 (daily cotton trade between New York and Liverpool; daily cotton prices in New York and Liverpool)
Collection Notes:
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transcribed from daily newspapers
Methodology
Data Source:
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The New York Times and the Liverpool Mercury
Unit(s) of Observation:
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city pair,
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