As reported in the first three colu

As reported in the first three columns, total welfare in the market equilibrium allocation is 6% lower than the constrained efficient allocation and 14% lower than the frictionless equilibrium. Moreover, externalities coming from search frictions have a substantial impact on world trade, both in terms of value and volume. Indeed, trade volume is 13% higher under constrained efficiency and 36% higher under the first-best, while net trade value (i.e. w ij − κ ij ) is 12% higher under constrained efficiency and 43% higher under the first-best. Moreover, ships would ballast 10% and 0.6% less under constrained efficiency and the first-best respectively; this suggests that although the majority of ballast traveling is attributed to the natural imbalance in the supply and demand of commodities rather than frictions as expected, some wasteful traveling does exist in the market equilibrium. Finally, ships wait less under constrained efficiency and in the frictionless world (9% and 23% respectively).