Cheung, Yin-wong; Lai, Kon S. - Hong Kong Institute for Monetary Research (HKIMR), … - 2006
Engel and 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. In reevaluating the border effect, this study shows that cross-country heterogeneity in price...