Cross-Border Commuting and Consuming: An Empirical Investigation

34 Pages Posted: 21 Oct 2014

See all articles by Thomas Y. Mathä

Thomas Y. Mathä

Banque centrale du Luxembourg

Alessandro Porpiglia

Banque Centrale du Luxembourg

Michael Ziegelmeyer

Banque centrale du Luxembourg; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy

Multiple version iconThere are 2 versions of this paper

Date Written: March 2014

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 cross-border sales that arise due to work-related cross-border crossings; it analyses the cross-border 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

JEL Classification: F15, R12, R23, J61

Suggested Citation

Mathä, Thomas Y. and Porpiglia, Alessandro and Ziegelmeyer, Michael Heinrich, Cross-Border Commuting and Consuming: An Empirical Investigation (March 2014). Max Planck Institute for Social Law and Social Policy Discussion Paper No. 284-14. Available at SSRN: https://ssrn.com/abstract=2512162 or http://dx.doi.org/10.2139/ssrn.2512162

Thomas Y. Mathä (Contact Author)

Banque centrale du Luxembourg ( email )

2, bd Royal
L-2983 Luxembourg
Luxembourg
+352 4774 4270 (Phone)
+352 4774 4920 (Fax)

Alessandro Porpiglia

Banque Centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Michael Heinrich Ziegelmeyer

Banque centrale du Luxembourg ( email )

2, boulevard Royal
Luxembourg, L-2983
Luxembourg

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Social Law and Social Policy ( email )

Amalienstraße 33
München, 80799
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
11
Abstract Views
328
PlumX Metrics