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Cross-border commuting and consuming: An empirical investigation

Author

Listed:
  • Thomas Y. Mathä
  • Alessandro Porpiglia
  • Michael Ziegelmeyer

Abstract

This paper analyses empirically how cross-border consumption varies across product and services categories and across household characteristics. It focuses on the part of crossborder sales that arise due to work-related cross-border crossings; it analyses the crossborder consumption behaviour of cross-border commuter households residing in Belgium, France and Germany and working in Luxembourg. In total, it is estimated that these households spend ?925 million per annum in Luxembourg, reflecting about 17% of their gross annual income from Luxembourg and contributing about 10% to total household final consumption expenditure in Luxembourg. Cross-border consumption expenditure is shown to depend on individual and household characteristics, such as total household income, the number of cross-border commuters in the household, distance between home and work, as well as price level (index) differences between Luxembourg and its neighbouring countries. Cross-border commuters take advantage of existing arbitrage opportunities.

Suggested Citation

  • Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Cross-border commuting and consuming: An empirical investigation," BCL working papers 89, Central Bank of Luxembourg.
    • Handle: RePEc:bcl:bclwop:bclwp089
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.
    2. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2017. "Cross-border commuting and consuming: an empirical investigation," Applied Economics, Taylor & Francis Journals, vol. 49(20), pages 2011-2026, April.
    3. Guillaume Claveres & Thomas Y. Mathä & Giuseppe Pulina & Jan Stráský & Nicolas Woloszko & Michael Ziegelmeyer, 2020. "Housing and inequality: The case of Luxembourg and its cross-border workers," BCL working papers 144, Central Bank of Luxembourg.
    4. repec:jid:journl:y:2018:v:26:i:3:p:15-49 is not listed on IDEAS
    5. Yiwen Chen & Thomas Y. Mathä & Giuseppe Pulina & Michael Ziegelmeyer, 2021. "The Cross border Household Finance Consumption Survey: Results from the third wave," BCL working papers 154, Central Bank of Luxembourg.
    6. Yiwen Chen & Thomas Y. Mathä & Giuseppe Pulina & Barbara Schuster & Michael Ziegelmeyer, 2020. "The Luxembourg Household Finance Consumption Survey: Results from the third wave," BCL working papers 142, Central Bank of Luxembourg.
    7. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2018. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," Journal of Income Distribution, Ad libros publications inc., vol. 26(1), pages 1-35, March.
    8. Thomas Y. Mathä & Giuseppe Pulina & Michael Ziegelmeyer, 2018. "The Cross-border Household Finance and Consumption Survey: Results from the second wave," BCL working papers 119, Central Bank of Luxembourg.
    9. Vincent FROMENTIN & Joris MICHEL & Sylvain WEBER, 2021. "L’effet des fluctuations financières sur le nombre de travailleurs frontaliers : une analyse comparative du Luxembourg et de la Suisse," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 53, pages 51-68.
    10. Thomas Y. Mathä & Ana Montes-Viñas & Giuseppe Pulina & Michael Ziegelmeyer, 2024. "The Cross-Border Household Finance and Consumption Survey: Results from the fourth wave in 2021," BCL working papers 188, Central Bank of Luxembourg.

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    More about this item

    Keywords

    Cross-border shopping; commuting; consumption; expenditure; households;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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