Cross-border shopping: Evidence and welfare implications for Switzerland

Ariel Burstein, Sarah Lein and Jonathan Vogel

Journal of International Economics, 2024, vol. 152, issue C

Abstract: Consumers access foreign goods by purchasing them domestically or shopping abroad. We present new facts on cross-border shopping by Swiss households showing, for example, that prices of identical products are lower in neighboring countries, cross-border shopping shares fall with distance to the border, and price gaps and cross-border shopping shares rose following the 2015 Swiss Franc appreciation. We use a simple model of cross-border shopping to quantify how variation across space in cross-border shopping results in heterogeneous changes in cost-of-living in response to changes in international prices such as the 2015 Swiss Franc Appreciation and the 2020 Covid-19-related closing of the border.

Keywords: Cross-border shopping; Exchange rates; Gains from trade (search for similar items in EconPapers)
Date: 2024
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Working Paper: Cross-Border Shopping: Evidence and Welfare Implications for Switzerland (2024)
Working Paper: Cross-Border Shopping: Evidence and Welfare Implications for Switzerland (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:152:y:2024:i:c:s0022199624001429

DOI: 10.1016/j.jinteco.2024.104015

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