Advanced Search
MyIDEAS: Login

Milkshake Prices, International Reserves, and the Mexican Peso

Contents:

Author Info

  • Thomas M Fullerton Jr

    (University of Texas at El Paso)

  • David Torres

    (El Paso Water Utilities)

Abstract

Menu prices from 13 international restaurant franchises that operate in both El Paso, Texas and Ciudad Juarez, Mexico are utilized to examine the behavior over time of the peso/dollar exchange rate. Parametric and non-parametric tests indicate that the price ratio alone provides a biased estimator for the exchange rate. In addition to the multi-product price ratio, the empirical analysis also incorporates interst rate parity and balance of payment variables. The combination of unique microeconomic sample data with national macroeconomic variables illustrates one manner in which border economies provide information regarding the interplay of financial markets between Mexico and the United States.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/if/papers/0508/0508009.doc
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series International Finance with number 0508009.

as in new window
Length: 24 pages
Date of creation: 25 Aug 2005
Date of revision:
Handle: RePEc:wpa:wuwpif:0508009

Note: Type of Document - doc; pages: 24
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords: Purchasing Power Parity; Exchange Rates; border Economies;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpif:0508009. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.