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Restaurant Prices and the Mexican Peso

Author

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  • Thomas M Fullerton Jr

    (University of Texas at El Paso)

  • Roberto Coronado

    (Federal Reserve Bank of Dallas)

Abstract

International restaurant franchise price data are used to examine purchasing power parity and the behavior of the Mexican peso. Sample data are from El Paso, Texas and Ciudad Juarez, Mexico. A battery of statistical tests indicate that the price ratio and the exchange rate are statistically different from each other, but correlated.

Suggested Citation

  • Thomas M Fullerton Jr & Roberto Coronado, 2004. "Restaurant Prices and the Mexican Peso," International Finance 0403004, EconWPA.
  • Handle: RePEc:wpa:wuwpif:0403004 Note: Type of Document - word doc; prepared on Win98; pages: 17. International restaurant franchise price data are used to examine purchasing power parity and the behavior of the Mexican peso.
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    References listed on IDEAS

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    12. Rogers, John H. & Jenkins, Michael, 1995. "Haircuts or hysteresis? Sources of movements in real exchange rates," Journal of International Economics, Elsevier, vol. 38(3-4), pages 339-360, May.
    13. John P. Judd, 1986. "M1 and monetary policy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue may9.
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    Citations

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    Cited by:

    1. Fullerton Jr., Thomas M. & Fierro, Karen P. & Villalobos, Emmanuel, 2009. "Cross-border restaurant price and exchange rate interactions," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 281-288, December.
    2. Francisco J. Pallares & Adam G. Walke & Thomas M., 2014. "Are Online Pharmacy Prices Really Lower in Mexico?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(4), pages 416-431, April.
    3. Michael J. Pisani & Thomas M. Fullerton, Jr., 2013. "Microenterprise Peso Acceptance in El Paso, Texas," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 75-94, November.
    4. Blanco-Gonzalez, Lorenzo & Fullerton, Thomas Jr., 2006. "Borderplex menu evidence for the law of one price," Economics Letters, Elsevier, vol. 90(1), pages 28-33, January.
    5. Yoskowitz, David W. & Pisani, Michael J., 2007. "Risk and reward: Currency substitution and acceptance of the Mexican peso by firms in the United States southern frontier," The Quarterly Review of Economics and Finance, Elsevier, vol. 47(3), pages 422-434, July.
    6. Loría, Eduardo & Salas, Emmanuel, 2013. "Crucial exchange rate parity. Evidence for Mexico," The North American Journal of Economics and Finance, Elsevier, vol. 24(C), pages 101-112.
    7. Blanco-Gonzalez, Lorenzo & Fullerton, Thomas M., Jr., 2008. "La Ley del Precio Unitario en la Zona Metropolitana Fronteriza
      [The Law of One Price in the Borderplex]
      ," MPRA Paper 14687, University Library of Munich, Germany.

    More about this item

    Keywords

    Purchasing power parity; restaurant prices; Mexico;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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