<?xml version="1.0" encoding="ISO-8859-1"?><article xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance">
<front>
<journal-meta>
<journal-id>1665-5346</journal-id>
<journal-title><![CDATA[Revista mexicana de economía y finanzas]]></journal-title>
<abbrev-journal-title><![CDATA[Rev. mex. econ. finanz]]></abbrev-journal-title>
<issn>1665-5346</issn>
<publisher>
<publisher-name><![CDATA[Instituto Mexicano de Ejecutivos de Finanzas A.C.]]></publisher-name>
</publisher>
</journal-meta>
<article-meta>
<article-id>S1665-53462021000200005</article-id>
<article-id pub-id-type="doi">10.21919/remef.v16i2.468</article-id>
<title-group>
<article-title xml:lang="en"><![CDATA[Exchange Rate Pass-Through to Prices in Mexico: A Study of the Main Border and Non-Border Cities]]></article-title>
<article-title xml:lang="es"><![CDATA[El traspaso entre el tipo de cambio e inflación en México: un estudio para ciudades fronterizas y no-fronterizas]]></article-title>
</title-group>
<contrib-group>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Saucedo]]></surname>
<given-names><![CDATA[Eduardo]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
<contrib contrib-type="author">
<name>
<surname><![CDATA[Gonzalez]]></surname>
<given-names><![CDATA[Jorge]]></given-names>
</name>
<xref ref-type="aff" rid="Aff"/>
</contrib>
</contrib-group>
<aff id="Af1">
<institution><![CDATA[,Instituto Tecnológico y de Estudios Superiores de Monterrey  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>Mexico</country>
</aff>
<aff id="Af2">
<institution><![CDATA[,Instituto Econofinanzas  ]]></institution>
<addr-line><![CDATA[ ]]></addr-line>
<country>México</country>
</aff>
<pub-date pub-type="pub">
<day>00</day>
<month>06</month>
<year>2021</year>
</pub-date>
<pub-date pub-type="epub">
<day>00</day>
<month>06</month>
<year>2021</year>
</pub-date>
<volume>16</volume>
<numero>2</numero>
<copyright-statement/>
<copyright-year/>
<self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_arttext&amp;pid=S1665-53462021000200005&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_abstract&amp;pid=S1665-53462021000200005&amp;lng=en&amp;nrm=iso"></self-uri><self-uri xlink:href="http://www.scielo.org.mx/scielo.php?script=sci_pdf&amp;pid=S1665-53462021000200005&amp;lng=en&amp;nrm=iso"></self-uri><abstract abstract-type="short" xml:lang="en"><p><![CDATA[Abstract This study analyzes the exchange rate pass-through effect on the Consumer Price Index (CPI) in Mexico's main border and 27 non-border metropolitan cities. The period examined includes monthly data from January 2002 to December 2019. A vector autoregressive model (VAR) is used, which includes formal employment at the city level as a proxy to economic development, interest rates, nominal exchange rates, each analyzed city&#8217;s CPI, U.S. consumer prices, energy commodity prices and control variables such as service sector employment share and large firm employment share. Impulse response functions are constructed. Results for the 2002-2016 period indicate that exchange rate changes primarily affect border cities. Different arguments are included to justify such results. Pass-through values are also found to increase in general for all cities when the period 2017-2019 (January 2017 when important gasoline price shocks started previous its price liberalization in December 2017) is included in the regressions.]]></p></abstract>
<abstract abstract-type="short" xml:lang="es"><p><![CDATA[Resumen Se estudia el efecto traspaso del tipo de cambio en el Índice de Precios al Consumidor (INPC) en áreas metropolitanas fronterizas y 27 no-fronterizas de México. El periodo abarca de enero 2002 a diciembre 2019 y se utilizan datos mensuales. Se emplea un modelo de vectores autoregresivos (VAR), que incluye empleo formal a nivel ciudad como proxy del desempeño económico, tasas de interés, tipo de cambio nominal, índices de precios de cada ciudad analizada, el índice de precios en USA, precios de commodities de energía y variables de control como el peso de los servicios y la participación de empresas grandes en el empleo de cada ciudad. Funciones de impulso respuesta son construidas. Los resultados para 2002-2016 indican que el tipo de cambio afecta en mayor intensidad a las ciudades fronterizas. Se incluyen diversos argumentos que justifican dichos resultados. Se encuentra adicionalmente, que los valores de traspaso aumentan en forma general cuando se incluye 2017-2019, periodo donde en enero de 2017 comenzaron importantes variaciones en el precio de la gasolina, previo a su liberalizacion en diciembre de 2017.]]></p></abstract>
<kwd-group>
<kwd lng="en"><![CDATA[exchange rate pass-through]]></kwd>
<kwd lng="en"><![CDATA[inflation]]></kwd>
<kwd lng="en"><![CDATA[Mexico]]></kwd>
<kwd lng="en"><![CDATA[impulse response function]]></kwd>
<kwd lng="es"><![CDATA[Efecto traspaso tipo de cambio]]></kwd>
<kwd lng="es"><![CDATA[inflación]]></kwd>
<kwd lng="es"><![CDATA[México]]></kwd>
<kwd lng="es"><![CDATA[funciones impulso respuesta]]></kwd>
</kwd-group>
</article-meta>
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