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La Ley del Precio Unitario en la Zona Metropolitana Fronteriza
[The Law of One Price in the Borderplex]

Author

Listed:
  • Blanco-Gonzalez, Lorenzo
  • Fullerton, Thomas M., Jr.

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.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:14687
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Exchange Rates; Purchasing Power Parity; Mexico Border;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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