This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window

American Economic Journal: Macroeconomics: Vol. 1 No. 1 (January 2009)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro Forthcoming Articles

Border Effect or Country Effect? Seattle May Not Be So Far from Vancouver After All

Article Citation

Gorodnichenko, Yuriy, and Linda L. Tesar. 2009. "Border Effect or Country Effect? Seattle May Not Be So Far from Vancouver After All." American Economic Journal: Macroeconomics, 1(1): 219-41.

DOI: 10.1257/mac.1.1.219

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)

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (601.42 KB)

Authors

Gorodnichenko, Yuriy (U CA, Berkeley)
Tesar, Linda L. (U MI)

JEL Classifications

F11: Neoclassical Models of Trade
F14: Country and Industry Studies of Trade

Comments

View Comments on This Article (0) | Login to post a comment


American Economic Journal: Macroeconomics


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AEJ: Macro - All Issues

AEJ: Macro - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us