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Convergencia de los precios locales en México: un enfoque de pruebas entre pares/Convergence of local prices in Mexico: A pairwise approach

Author

Listed:
  • Domingo Rodríguez Benavides

    (Universidad Autónoma Metropolitana)

  • Abigail Rodríguez Nava

    (Universidad Autónoma Metropolitana)

Abstract

We analyze the convergence of local price levels in Mexico through a pairwise approach. For this purpose, we apply unit root tests to the relative prices of all possible combinations of cities and different goods and services. One of the main advantages of this approach is that a city of reference is not chosen as the basis for relative price levels in the analysis of stationarity. The approach is applied to monthly series of general and disaggregated indexes of a sample of prices of goods and services in the period 1982-2016. The results allow to reject the null hypothesis of non-convergence between the relative prices for most of the analyzed goods and services of the cities considered, although the convergence is to some extent limited.

Suggested Citation

  • Domingo Rodríguez Benavides & Abigail Rodríguez Nava, 2019. "Convergencia de los precios locales en México: un enfoque de pruebas entre pares/Convergence of local prices in Mexico: A pairwise approach," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 34(2), pages 309-332.
    • Handle: RePEc:emx:esteco:v:34:y:2019:i:2:p:309-332
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    References listed on IDEAS

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    More about this item

    Keywords

    local price indexes in Mexico; convergence; unit-root tests; pairwise approach; bootstrap;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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