FULLERTON JR, Thomas M

Currency movements and international border crossings - New York : Marcel Dekker, 2000

It is well known that merchandise trade flows respond to exchange rate policy changes over time. This topic, know in the economics literature as the J-curve effect, has been the subject of numerous studies. Exchange rate policies also impact commuter traffic between international metropolitan areas, but there has been much less attention devoted to uderstanding the effects of currency valuation shifts on border crossings between nations such as the United States and Mexico. While there has been some research conducted with respect to employment impacts on annual crossing volumes, the analysis has been limited to static models. The research at han attempts to partially fill this gap in the existing literature by examining the response in international commuter flows to exchange rate valuation shifts. In order to gain better appreciation of the temporal aspects of border crossing reactions to policy changes of this nature, all of the analysis is conducted within a dynamic framework