between prices in the U.S. and Canada in our data (annual from 1990 to 2002) is greater than seven percent. This difference …

Engel and Rogers (1996) find that crossing the US-Canada border can considerably raise relative price volatility and … effect estimation. Moreover, using a direct decomposition method, two conditions governing the strength of the border effect …

primarily from problems concerning the data required for the estimation of the Balassa-Samuelson effect. Thus, in interpreting … the findings, the main focus is a direct estimation of the relationship between relative price levels and economic …