Border Effect or Country Effect? Seattle May Not Be so Far from Vancouver After All
重新审视边界效应的证据,指出若国家内部价格差异分布不同,则无法明确衡量边界效应,并证明Engel和Rogers(1996)发现的边界效应完全由美加两国国内价格分布差异驱动。
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.