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Cross-border commuting and consuming: An empirical investigation

Author

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  • 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 & 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.
    2. Mathä, Thomas Y. & Porpiglia, Alessandro & Ziegelmeyer, Michael, 2014. "Wealth differences across borders and the of real effect estate price dynamics: Evidence from two household surveys," MEA discussion paper series 201411, Munich Center for the Economics of Aging (MEA) at the Max Planck Institute for Social Law and Social Policy.

    More about this item

    Keywords

    Cross-border shopping; commuting; consumption; expenditure; households;

    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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