Cross-border commuting and consuming: An empirical investigation
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.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chiou Lesley & Muehlegger Erich, 2008. "Crossing the Line: Direct Estimation of Cross-Border Cigarette Sales and the Effect on Tax Revenue," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-41, December.
- Cameron, Gavin & Muellbauer, John, 1998.
"The Housing Market and Regional Commuting and Migration Choices,"
CEPR Discussion Papers
1945, C.E.P.R. Discussion Papers.
- Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-46, September.
- Leal, Andrés & López-Laborda, Julio & Rodrigo, Fernando, 2009. "Prices, taxes and automotive fuel cross-border shopping," Energy Economics, Elsevier, vol. 31(2), pages 225-234.
- Asplund, Björn Marcus & Friberg, Richard & Wilander, Fredrik, 2005.
"Demand and Distance: Evidence on Cross-Border Shopping,"
CEPR Discussion Papers
4983, C.E.P.R. Discussion Papers.
- Asplund, Marcus & Friberg, Richard & Wilander, Fredrik, 2007. "Demand and distance: Evidence on cross-border shopping," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 141-157, February.
- Friberg, Richard & Asplund, Marcus & Wilander, Fredrik, 2005. "Demand and Distance: Evidence on Cross-Border Shopping," SSE/EFI Working Paper Series in Economics and Finance 587, Stockholm School of Economics.
- Egger, Peter & Pfaffermayr, Michael & Winner, Hannes, 2005. "Commodity taxation in a 'linear' world: a spatial panel data approach," Regional Science and Urban Economics, Elsevier, vol. 35(5), pages 527-541, September.
- Lovenheim, Michael F., 2008.
"How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling,"
National Tax Journal,
National Tax Association, vol. 61(1), pages 7-33, March.
- Michael F. Lovenheim, 2007. "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," Discussion Papers 06-040, Stanford Institute for Economic Policy Research, revised Oct 2009.
- repec:mea:meawpa:14284 is not listed on IDEAS
- Banfi, Silvia & Filippini, Massimo & Hunt, Lester C., 2005. "Fuel tourism in border regions: The case of Switzerland," Energy Economics, Elsevier, vol. 27(5), pages 689-707, September.
- Mark D. Manuszak & Charles C. Moul, 2009. "How Far for a Buck? Tax Differences and the Location of Retail Gasoline Activity in Southeast Chicagoland," The Review of Economics and Statistics, MIT Press, vol. 91(4), pages 744-765, November.
- Thomas Matha & Ladislav Wintr, 2009. "Commuting flows across bordering regions: a note," Applied Economics Letters, Taylor & Francis Journals, vol. 16(7), pages 735-738.
- Ian Crawford & Sarah Tanner, 1995. "Bringing it all back home: alcohol taxation and cross-border shopping," Fiscal Studies, Institute for Fiscal Studies, vol. 16(2), pages 94-114, May.
- Søren Bo Nielsen, .
"A Simple Model of Commodity Taxation and Cross-Border Shopping,"
EPRU Working Paper Series
98-18, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
- Nielsen, Soren Bo, 2001. " A Simple Model of Commodity Taxation and Cross-Border Shopping," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 599-623, December.
- Nielsen, Søren Bo, 1998. "A simple model of commodity taxation and cross-border shopping," Working Papers 13-1998, Copenhagen Business School, Department of Economics.
- Stehr, Mark, 2007. "The Effect of Sunday Sales Bans and Excise Taxes on Drinking and Cross–Border Shopping for Alcoholic Beverages," National Tax Journal, National Tax Association, vol. 60(1), pages 85-105, March.
- Marie Thursby & Richard Jensen & Jerry Thursby, 1991.
"Smuggling, Camouflaging, and Market Structure,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 106(3), pages 789-814.
- Richard A. Jensen & Jerry Thursby & Marie Thursby, 1988. "Smuggling, Camouflaging, and Market Structure," NBER Working Papers 2630, National Bureau of Economic Research, Inc.
- Thursby, M. & Jensen, R. & Thursby, J., 1991. "Smuggling, Camouflaging, and Market Structure," Purdue University Economics Working Papers 1005, Purdue University, Department of Economics.
- Rietveld, P. & Bruinsma, F. R. & van Vuuren, D. J., 2001. "Spatial graduation of fuel taxes; consequences for cross-border and domestic fuelling," Transportation Research Part A: Policy and Practice, Elsevier, vol. 35(5), pages 433-457, June.
- Thursby, Jerry G. & Thursby, Marie C., 2000. "Interstate Cigarette Bootlegging: Extent, Revenue Losses, and Effects of Federal Intervention," National Tax Journal, National Tax Association, vol. 53(n. 1), pages 59-78, March.
- Egger, Peter & Pfaffermayr, Michael & Winner, Hannes, 2005. "An unbalanced spatial panel data approach to US state tax competition," Economics Letters, Elsevier, vol. 88(3), pages 329-335, September.
- Michael Keen, 2002. "Some International Issues in Commodity Taxation," IMF Working Papers 02/124, International Monetary Fund.
- Jordan Marvakov & Thomas Y. Mathä, 2007. "An analysis of regional commuting flows in the European Union," BCL working papers 28, Central Bank of Luxembourg.
- Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2012. "Income, Wealth and Consumption of Cross-Border Commuters to Luxembourg," BCL working papers 78, Central Bank of Luxembourg.
- Ohsawa, Yoshiaki, 1999. "Cross-border shopping and commodity tax competition among governments," Regional Science and Urban Economics, Elsevier, vol. 29(1), pages 33-51, January.
- Coats, R. Morris, 1995. "A Note on Estimating Cross-Border Effects of State Cigarette Taxes," National Tax Journal, National Tax Association, vol. 48(4), pages 573-84, December.
- Walsh, Michael J. & Jones, Jonathan D., 1988. "More Evidence on the "Border Tax" Effect: The Case of West Virginia, 1979-84," National Tax Journal, National Tax Association, vol. 41(2), pages 261-65, June.
When requesting a correction, please mention this item's handle: RePEc:bcl:bclwop:bclwp089. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.