Access the full text.
Sign up today, get DeepDyve free for 14 days.
Loading next page...
/lp/american-economic-association/border-effect-or-country-effect-seattle-may-not-be-so-far-from-OcpLAqyw9E
References
References for this paper are not available at this time. We will be adding them shortly, thank you for your patience.
- Publisher
- American Economic Association
- Copyright
- Copyright © 2009 by the American Economic Association
- Subject
- Articles
- ISSN
- 1945-7715
- eISSN
- 1945-7715
- DOI
- 10.1257/mac.1.1.219
- Publisher site
- See Article on Publisher Site
Abstract
Abstract This paper reexamines the evidence on the border effect. We argue that if there is cross-country heterogeneity in the distribution of within-country price differentials, there is no clear benchmark from which to gauge the effect of a border. In the absence of a structural model or a (natural) experiment, it is impossible to separate the “border” effect from the effect of trading with a country with a different distribution of prices. We show that the border effect identified by Engel and Rogers (1996) is entirely driven by the difference in the distribution of prices within the United States and Canada. (JEL F11 , F14 )
Journal
American Economic Journal: Macroeconomics – American Economic Association
Published: Jan 1, 2009