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Cross-border commuting and consuming: An empirical investigation

Thomas Mathä (), Alessandro Porpiglia and Michael Ziegelmeyer ()

No 89, BCL working papers from Central Bank of Luxembourg

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.

Keywords: Cross-border shopping; commuting; consumption; expenditure; households (search for similar items in EconPapers)
JEL-codes: F15 R12 R23 J61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-geo, nep-ger and nep-ure
Date: 2014-03
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http://www.bcl.lu/fr/Recherche/publications/cahiers_etudes/89/BCLWP089.pdf (application/pdf)

Related works:
Journal Article: Cross-border commuting and consuming: an empirical investigation (2017) Downloads
Working Paper: Cross-border commuting and consuming: an empirical investigation (2014) Downloads
Working Paper: Cross-border commuting and consuming: An empirical investigation (2014) Downloads
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