Abstract
In this paper I quantify the effect of the tightening of the security precautions post-9/11 on the volume of cross-border shopping from Canada into the United States. Using an extended version of the cross-border shopping model of Ferris (2000) , the results suggest that the events of September 11th, 2001, precipitated a drop of between 300,000 and 600,000 same-day cross-border travellers per month or roughly a quarter of the previous volume.
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