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Análisis de la paridad del poder de compra: evidencia empírica entre México y Estados Unidos

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  • Mario Gómez Aguirre

    (Universidad Michoacana de San Nicolás de Hidalgo)

  • José Carlos A. Rodríguez Chávez

    (Universidad Michoacana de San Nicolás de Hidalgo)

Abstract

This paper analyzes evidence on Purchasing Power Parity between Mexico and the United States, as well as the causal link between relative prices and exchange rate (1957-2010). We use a unit root test that allows for two structural changes and two tests of causality. The results indicate that the PPP between Mexico and the United States is validated, reflecting the integration and price convergence of the two economies to a very rapid rate. In addition, the exchange rate follows the behavior of relative prices of both countries.

Suggested Citation

  • Mario Gómez Aguirre & José Carlos A. Rodríguez Chávez, 2012. "Análisis de la paridad del poder de compra: evidencia empírica entre México y Estados Unidos," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 27(1), pages 169-207.
    • Handle: RePEc:emx:esteco:v:27:y:2012:i:1:p:169-207
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    More about this item

    Keywords

    purchasing power parity; exchange rate; structural change; prices; causality;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General

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