Krishna (1998) shows that a bilateral agreement between two countries render a multilateral agreement less attractive if the bilateral agreement is trade diverting. This paper combines Krishna’s model with the empirical approach of Anderson and van Wincoop (2003) to show that the estimated...

This paper analyses the relative price variability (here after, RPVI) for Argentina from 1960 to 1993. The authors have distinguished a first period (1960-1975) with a moderate and stable inflation and a second one (1975-1993) with four inflation regimes: moderate, high, very high and...