The Canadian border and the US dollar: The impact of exchange rate changes on US retailers
利用美国九年的产品级零售价格和销售数据，研究美加名义汇率变动如何通过跨境旅行影响边境地区美国零售商的定价和销量，并检验地理距离在汇率传导中的作用。
Abstract This paper provides a micro‐level investigation into the impact of changes in the US–Canada nominal exchange rate on retailers in US regions lying close to the US–Canada border. Using a large data set on product‐level retail prices and sales in the United States over a nine year period, we explore the links between changes in exchange rates, cross‐border travel and the price and quantity responses of US retailers. This allows us to assess the importance of geography and distance in affecting the pass‐through of exchange rate changes into prices and quantities at the level of the consumer. We develop a two‐stage theoretical model of cross‐border travel and industry equilibrium for retail sales at the border. Our empirical results accord well with the implications of the model.