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Canadian travelers can apply for NEXUS cards which allow them to use dedicated fast-
track lines while going through security at Canadian airports and while going through
border control at US airports. NEXUS cards currently cost about $50 plus the time spent
applying (filling forms, giving interviews, waiting in line at government offices.) A card
is valid for five years. How can you use NEXUS purchases to estimate the value travelers
place on their time? How would you set up the empirical analysis?

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  • 1. Canadian travelers can apply for NEXUS cards which allow them to use dedicated fast- track lines while going through security at Canadian airports and while going through border control at US airports. NEXUS cards currently cost about $50 plus the time spent applying (filling forms, giving interviews, waiting in line at government offices.) A card is valid for five years. How can you use NEXUS purchases to estimate the value travelers place on their time? How would you set up the empirical analysis?