How Wide is the Border?

• DOI: 10.17016/ifdp.1995.498
• Publication Date: 2019-08-06T13:43:42Z
• Authors: Charles Engel; John Harold Rogers
• Keywords: Equidistant; Variation (astronomy)

Failures of the law one price explain much variation in real C.P.I. exchange rates. We use data for U.S. cities and Canadian 14 categories consumer prices to examine nature deviations from price. The distance between explains a significant amount similar goods different cities. But, is higher two located countries than equidistant same country. By our most conservative measure, crossing border adds as volatility adding 2500 miles