The Tradability of Services: Geographic Concentration and Trade Costs

Jensen thanks the Sloan Foundation, the MacArthur Foundation, and the National Science Foundation (SES-0552029) for research support. Gervais thanks the Institute for Scholarship in the Liberal Arts for research support. We thank James Anderson, Andrew Bernard, Lorenzo Caliendo, Robert Feenstra, Joseph Kaboski, Dennis Quinn, Stephen Redding, David Richardson, Peter Schott, Jeff Thurk, and Stephen Yeaple, as well as participants at various seminars and conferences for their comments. Special thanks to Jim Davis for timely help when it counted. All remaining errors are our own. The research in this paper was conducted while the authors were Special Sworn Status researchers of the U.S. Census Bureau at the Center for Economic Studies. Any opinions and conclusions expressed herein are those of the authors and do not necessarily represent the views of the U.S. Census Bureau. All results have been reviewed to ensure that no confidential information is disclosed. Previous versions of this paper were circulated under the title "Are Services Tradable? Evidence from US Microdata." The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• December 17, 2013