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Article
Inflation and Relative Price Variability in Mexico: The Role of Remittances
Applied Economics Letters (2008)
  • Hiranya K Nath, Sam Houston State University
  • Juventino Ulyses Balderas, Sam Houston State University
Abstract
This paper derives generalized impulse responses from the estimation of a vector autoregression (VAR) model using monthly data between 1995 and 2005 for Mexico, to examine the inflation-RPV relationship, and to investigate if remittances could account for the observed relationship. While the positive relationship between inflation and RPV is a robust result, remittances are found to have significant positive effects on both inflation and RPV. These results are interpreted as providing evidence in support of our intuition that remittances could be responsible for generating a positive relationship between inflation and RPV.
Keywords
  • Inflation,
  • relative price variability,
  • remittances,
  • Mexico
Disciplines
Publication Date
2008
Citation Information
Hiranya K Nath and Juventino Ulyses Balderas. "Inflation and Relative Price Variability in Mexico: The Role of Remittances" Applied Economics Letters Vol. 15 Iss. 3 (2008)
Available at: http://works.bepress.com/hiranya_nath/11/