The effects of substitution and the evolution of the cost of living expenses within the Uruguay-Brazil border
The consumers that live near the border Uruguay-Brazil have the possibility of buying goods on both sides of such border. They may replace purchases of one country to the other according to the evolution of prices. In this way, consumers have a lower cost of living compared to the consumers living i...
| Autor: | |
|---|---|
| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2006 |
| País: | México |
| Institución: | Universidad Autónoma de Baja California Sur |
| Repositorio: | Repositorio Institucional de la UABCS |
| Idioma: | español |
| OAI Identifier: | oai:repositorioinstitucional.uabc.mx:20.500.12930/6550 |
| Acceso en línea: | https://ref.uabc.mx/ojs/index.php/ref/article/view/201 |
| Access Level: | acceso abierto |
| Palabra clave: | border consume cost expense food supplies. Social sciences Statistics Demographics economy Capital capitalism prices Consumption and demand trade frontera consumo costo gasto alimentos. Ciencias sociales Estadística Demografía Economía Capitalismo Precios Consumo y demanda Comercio |
| Sumario: | The consumers that live near the border Uruguay-Brazil have the possibility of buying goods on both sides of such border. They may replace purchases of one country to the other according to the evolution of prices. In this way, consumers have a lower cost of living compared to the consumers living in the rest of the country. Besides, if the real bilateral exchange rate undergoes important fluctuations, they may take significant advantage of their location. This paper deals with the issue from a theoretical and empirical point of view. On one hand, it presents an adaptation of the cost-of-living index theory to the situation, and on the other hand, the estimates show that the advantages of living on the border were really significant in the last decade. |
|---|