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The role of insurance in international shipping costs
- Wolanski, Adrian
- Economics letters 2017 v.155 pp. 116-120
- cost analysis, insurance, shipping
- We estimate insurance costs for international shipments, and determine that distance does not affect insurance costs. This corroborates empirical observations of the Alchian–Allen effect. We also show that GDP per capita is endogenously related to unit value through insurance costs.