Munich Personal RePEc Archive

La Ley del Precio Unitario en la Zona Metropolitana Fronteriza

Blanco-Gonzalez, Lorenzo and Fullerton, Thomas M., Jr. (2008): La Ley del Precio Unitario en la Zona Metropolitana Fronteriza. Published in: Chihuahua Hoy , Vol. VI, No. 2008 (15. December 2008): pp. 199-213.

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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.

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