THE ECONOMICS OF CROSS-BORDER TRAVEL

• 成果类型: Article
• 署名作者: Chandra, Ambarish; Head, Keith; Tappata, Mariano
• 署名单位: University of Toronto; University of British Columbia; Center for Economic & Policy Research (CEPR)
• 刊物名称: REVIEW OF ECONOMICS AND STATISTICS
• ISSN/ISSBN: 0034-6535
• DOI: 10.1162/REST_a_00404
• 发表日期: 2014-10
• 页码: 648-661
• 关键词: prices; TRADE

摘要

We model the decision to travel across an international border as a trade-off between benefits derived from buying a range of products at lower prices and the costs of travel. We estimate the model using microdata on Canada-United States travel. Price differences motivate cross-border travel; a 10% home appreciation raises the propensity to cross by 8% to 26%. The larger elasticity arises when the home currency is strong, a result predicted by the model. Distance to the border strongly inhibits crossings, with an implied cost of 87 cents per mile. Geographic differences can partially explain why American travel is less exchange rate responsive.