Robertson, Raymond; Kumar, Anil; Dutkowsky, Donald H. - In: Journal of Macroeconomics 42 (2014) C, pp. 241-262
This study examines the long-run relationship between US and Mexican prices. We use panel cointegration techniques that allow for heterogeneous relationships across goods to examine the existence of weak-form and strong-form Purchasing Power Parity (PPP) between the US and Mexico. We construct...