boldest interventions in the recent history of Mexico and the rest of the world: the Northern Border Free Zone (NBFZ …). Launched in January 2019, this program doubles the minimum wage and substantially lowers taxes in 43 municipalities along the …

boost activity on the northern Mexican border. In this paper we estimate the effects of both policies on prices. We find … that the upward pressures on prices due to the minimum wage hike were more than offset by the downward pressures associated … with the VAT. In the absence of the VAT reduction policy, average prices in the northern Mexican border would have been …