Table 2.

Structural Endogenous Switching Regression Model

VARIABLES	Probability of Border Crossing	Home-state price paid	Border-state price paid
Distance to border	−0.044***
	(0.012)
Distance2	0.007***
	(0.002)
Price difference	0.095***
	(0.017)
Price difference * distance	−0.078***
	(0.018)
Price difference * distance2	0.017***
	(0.004)
Home-state tax		0.866***
		(0.043)
Border-state tax			0.399***
			(0.136)
Age 30–39	0.009*	−0.146***	−0.134
	(0.004)	(0.020)	(0.107)
Age 40–49	0.014***	−0.323***	−0.445***
	(0.004)	(0.018)	(0.095)
Age 50–59	0.012**	−0.409***	−0.633***
	(0.005)	(0.024)	(0.113)
Age 60+	0.027***	−0.497***	−0.741***
	(0.008)	(0.032)	(0.134)
Female	0.001	−0.003	0.065
	(0.003)	(0.013)	(0.060)
Black	−0.005	0.272***	0.516***
	(0.008)	(0.027)	(0.077)
Hispanic	−0.004	0.230***	0.421**
	(0.006)	(0.027)	(0.177)
Other races	0.004	0.057	0.105
	(0.008)	(0.038)	(0.167)
Less than high school	−0.005	−0.011	−0.036
	(0.004)	(0.014)	(0.097)
Some college	0.005	0.034***	0.097
	(0.003)	(0.012)	(0.068)
College or higher	0.015**	0.192***	0.281***
	(0.006)	(0.020)	(0.082)
Family income 25k–40k	0.006*	0.063***	0.081
	(0.004)	(0.017)	(0.085)
Family income 40k–75k	0.012***	0.116***	0.137*
	(0.004)	(0.017)	(0.081)
Family income 75k+	0.020***	0.228***	0.392***
	(0.005)	(0.024)	(0.084)
Household size	−0.007***	−0.004	−0.067***
	(0.001)	(0.005)	(0.024)
Married	0.003	−0.075***	−0.039
	(0.003)	(0.015)	(0.080)
Unemployed	−0.000	−0.043**	0.079
	(0.005)	(0.019)	(0.120)
Retired	0.016**	−0.117***	−0.040
	(0.007)	(0.028)	(0.108)
Not in labor force	0.002	−0.113***	−0.138**
	(0.004)	(0.017)	(0.069)
Marginal effect of distance(a)	−0.052
Marginal effect of price difference(a)	0.044

Robust standard errors (clustered at MSA level) in parentheses

^***p<0.01,

^**p<0.05,

^*p<0.1

All models also include a constant term and a set of dummies for MSA size, region, and survey month. Sample size for all models is 29,377.

^(a)Marginal effect is calculated at the mean for the sample.