The anecdote is famous. A mathematician,

The authors thank Richard Hornbeck and Dave Donaldson for sharing transport cost data. The Grey

Dave Donaldson, Keith Head and Michael Waugh. We also thank Arthur Lewbel for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment

Salinger (for excellent formal conference discussions), Mark Armstrong, David Atkin and Dave Donaldson (for suggesting new results), Jesse Shapiro (for suggesting ways of reframing the paper) and above all Jeremy Bulow (for more things than can be listed here). Weyl is grateful

This paper was written for the invited session on “Global Production Chains”at the 2012 AEA meetings in Chicago. A shorter version of this paper is forthcoming in the American Economic Review Papers and Proceedings. We thank Jon Vogel for an insightful discussion, and David Atkin, Dave Donaldson

induce shifts into single-majority local governments and lead to more vigorous enforcement of local taxes. The econometric results are consistent with the model’s main predictions on the dynamics of evasion. ∗We thank Dave Donaldson, Greg Kullman and Gordon Ferrier for help with data, and the ERC, the

to the regions that will be suitable for production in the future. Understanding how these frictions affect the impact of global warming is the primary goal of this paper. q We would like to thank David Nagy for excellent research assistance, Joseph Gomes and David Lobell for their help with data, and Dave

also attempt to shed light on policy responses to deteriorating shape. The adverse e¤ects of unfavorable topography appear to be exacerbated by building height restrictions, and mitigated by road infrastructure. I am grateful to my advisers Esther Duo, Ben Olken, and Dave Donaldson for their invaluable

and backlogged. Cost minimization technique has been used in the development of the model. Key-words: Deterioration, life time, shortages and backlogged. Inventory models involving time dependent demand pattern have received the attention of several researchers. Silver and Meal (1973), Donaldson (1977), Ritchie

and economic gaps observed in the population. JEL Classifications: I25, J15, J62, J71, N32 We are grateful to Ran Abramitzky, Lee Alston, Nicholas Bloom, Leah Boustan, Louis Cain, Gregory Clark, Giacomo De Giorgi, Dave Donaldson, Pascaline Dupas, Liran Einav, Katherine Eriksson, Osea Giuntella, Avner Greif