Cheung, Yin-Wong; Lai, Kon - In: International Economic Journal 20 (2006) 4, pp. 495-513
Engel & Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and that exchange rate fluctuations explain about one-third of the volatility increase. Using a decomposition method, this study re-evaluates the border effect. It is shown that...