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Análisis de cointegración y valores umbrales entre la inflación y el crecimiento económico en México: 1970-2007

  • W. Adrián Risso

    ()

    (Department of Economics, University of Siena)

  • Edgar J. Sánchez Carrera

    ()

    (Department of Economics, University of Siena)

The aim of this paper is to estimate long run relationships and threshold effects between inflation and economic growth in Mexico. We show the existence of such relationship in a cointegrated vector on Economic Growth (log of real GDP) and Inflation rate finding a corresponding elasticity significantly negative. Moreover, the causal relationship between these two series is studied using a more robust Granger causality test, without finding any directional causality between them. The estimated threshold model suggests 9 percent as the threshold level (i.e., structural break point) of inflation above which inflation significantly slows the Mexican economic growth.

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File URL: http://www.economia.uanl.mx/revistaensayos/xxix/2/Risso-Sanchez-Analisis-de-cointegracion.pdf
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Article provided by Universidad Autonoma de Nuevo Leon, Facultad de Economia in its journal Ensayos Revista de Economia.

Volume (Year): XXIX (2010)
Issue (Month): 2 (November)
Pages: 77-98

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Handle: RePEc:ere:journl:v:xxix:y:2010:i:2:p:77-98
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