La Ley del Precio Unitario en la Zona Metropolitana Fronteriza

The Law of One Price in the Borderplex

Lorenzo Blanco-Gonzalez 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 M21 R11 (search for similar items in EconPapers)
Date: 2008-04-10
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Chihuahua Hoy 2008.VI(2008): pp. 199-213

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/14687/1/MPRA_paper_14687.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

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

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().