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dc.contributor.authorGopinath, Gitaen_US
dc.contributor.authorGourinchas, Pierre-Olivieren_US
dc.contributor.authorHsieh, Chang-Taien_US
dc.contributor.authorLi, Nicholasen_US
dc.date.accessioned2009-09-23en_US
dc.date.accessioned2012-02-23T08:28:21Z-
dc.date.available2012-02-23T08:28:21Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/55642-
dc.description.abstractTo what extent do national borders and national currencies impose costs that segment markets across countries? To answer this question the authors use a dataset with product-level retail prices and wholesale costs for a large grocery chain with stores in the United States and Canada. They develop a model of pricing by location and employ a regression discontinuity approach to estimate and interpret the border effect. They report three main facts: One, the median absolute retail price and wholesale cost discontinuities between adjacent stores on either side of the U.S.-Canadian border are as high as 21 percent. In contrast, within-country border discontinuity is close to 0 percent. Two, the variation in the retail price gap at the border is almost entirely driven by variation in wholesale costs, not by variation in markups. Three, the border gaps in prices and costs co-move almost one-to-one with changes in the U.S.-Canadian nominal exchange rate. They show these facts suggest that the price gaps they estimate provide only a lower bound on border costs.en_US
dc.language.isoengen_US
dc.publisherFederal Reserve Bank of Boston Boston, MAen_US
dc.relation.ispartofseriesWorking paper series // Federal Reserve Bank of Boston 09-10en_US
dc.subject.jelF3en_US
dc.subject.jelF4en_US
dc.subject.jelF1en_US
dc.subject.ddc330en_US
dc.subject.stwGrenzeen_US
dc.subject.stwWährungen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwInternationale Marktsegmentierungen_US
dc.subject.stwEinzelhandelspreispolitiken_US
dc.subject.stwLebensmittelgroßhandelen_US
dc.subject.stwUSAen_US
dc.subject.stwKanadaen_US
dc.titleEstimating the border effect: Some new evidenceen_US
dc.typeWorking Paperen_US
dc.identifier.ppn609336711en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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