Aguirre, Mario Gómez; Chávez, José Carlos A. Rodríguez - In: Estudios Económicos 27 (2012) 1, pp. 169-207
This paper analyzes evidence on Purchasing Power Parity between Mexico and the United States, as well as the causal link between relative prices and exchange rate (1957-2010). We use a unit root test that allows for two structural changes and two tests of causality. The results indicate that the...