An analysis of Mexican consumers’ purchases in the United States based on household spending

An analysis of Mexican consumers’ purchases in the United States based on household spending

Blog Article

Using Rolling Machines microdata, consumer choice models, and fiscal competition, this study analyzes the reasons for cross–border shopping by Mexicans in the U.S.market by examining whether the incentive for consumers to cross the border is an inverse function of the distance from the border.

Assuming rational consumers and given the differences in prices and consumption taxes between the two countries, this study finds that the location of consumers in border states and migratory Socks traditions are the main determinants of cross–border shopping.