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Convergencia de precios entre las principales ciudades de México

Author

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  • Gómez Aguirre, Mario

    (Instituto de Investigaciones Económicas y Empresariales de la Universidad Michoacana de San Nicolás de Hidalgo)

Abstract

This paper examines price convergence between the major cities of Mexico making use of unit root tests with panel data. If the price deviation is stationary, it is said that there is price convergence and market integration. The results achieved in this paper indicate that the price deviations are temporary (not permanent), and so they tend to return to their average values or long-term equilibrium.

Suggested Citation

  • Gómez Aguirre, Mario, 2010. "Convergencia de precios entre las principales ciudades de México," Revista Nicolaita de Estudios Económicos, Universidad Michoacana de San Nicolás de Hidalgo, Instituto de Investigaciones Económicas y Empresariales, vol. 0(2), pages 85-104.
    • Handle: RePEc:ris:rnicee:0056
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    More about this item

    Keywords

    unit root; purchasing power parity; price convergence; integration;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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