NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Ethan Singer

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Institutional Affiliation: Economics Dept., University of Minnesota

NBER Working Papers and Publications

April 2018Indivisibilities in Distribution
with Thomas J. Holmes: w24525
This paper develops and estimates a model of indivisibilities in shipping and economies of scale in consolidation. It uses highly detailed data on imports for which it is possible to observe the contents of individual containers. In the model, a firm is able to adapt to indivisibility constraints by using consolidation strategies, and by determining how dense to make its distribution network in both space and time. Indivisibilities are found to create significant scale economies in distribution.
 
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