Appendix for the PPP hypothesis and structural breaks: the case of Mexico

This appendix presents an extended explanation for our finding of mean reversion of the real exchange rate to a shifting mean using monthly data for Mexico, 1969-2010. Because such shifts coincide with trade liberalization in Mexico, we conclude that changes in the tradable/nontradable goods composition of the price index used in the empirical estimations caused the mean shifts.

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Year of publication:	2012-09-04
Authors:	Gómez-Zaldívar, Manuel ; Ventosa-Santaulària, Daniel ; Wallace, Frederick

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Gómez-Zaldívar, Manuel and Ventosa-Santaulària, Daniel and Wallace, Frederick (2012): Appendix for the PPP hypothesis and structural breaks: the case of Mexico.
Classification:	C22 - Time-Series Models ; F31 - Foreign Exchange
Source:	BASE

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