La Ley del Precio Unitario en la Zona Metropolitana Fronteriza

The Law of One Price in the Borderplex

Blanco-Gonzalez, Lorenzo and Thomas Fullerton ()

MPRA Paper from University Library of Munich, Germany

Abstract: Menu prices from 8 international restaurant franchises are utilized to examine deviations from purchasing power parity between Mexico and the United States. Products in the sample are sold on both sides of the border in Ciudad Juarez, Mexico and El Paso, USA. The results indicate that Borderplex restaurant prices respond very quickly to variations in the peso/dollar exchange rate. In addition to econmetric and staitsitical evidence, graphical illustrations are also provided.

Keywords: Exchange Rates; Purchasing Power Parity; Mexico Border (search for similar items in EconPapers)
JEL-codes: F31 R11 M21 (search for similar items in EconPapers)
Date: 2008-04-10
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Published in Chihuahua Hoy 2008.VI(2008): pp. 199-213

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Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:14687

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