Purchasing power parity in Mexico since 1933

Latin American Economic Review

Table 2 Estimation results for the coefficient on the dollar-denominated Mexican price level: ADL model with and without instruments

ADL	No IV^a	IV14	IV15	IV16	IV17	IV18	IV19	IV20	IV21	IV22	IV23	IV24
FMEX1	−0.0338	− *0.0693*	−0.0525	−0.0346	−0.0400	−0.0309	−0.0281	−0.0262	−0.0178	−0.0334	−0.0094	0.0050
FMEX1	−4.212	−0.977	−0.729	−0.488	−0.567	−0.410	−0.360	−0.269	−0.147	−0.284	−0.0489	0.0185
FMEX2	−0.0333	− *0.0705*	−0.0531	−0.0351	−0.0401	−0.0309	−0.0281	−0.0268	−0.0193	−0.0355	−0.0132	−0.0012
FMEX2	−4.179	−1.015	−0.755	−0.507	−0.585	−0.426	−0.375	−0.292	−0.170	−0.325	−0.076	−0.005
FMEX3	−0.0441	−0.0436	−0.0326	−0.0175	−0.0227	−0.0140	−0.0114	−0.0061	−0.0037	−0.0184	0.0050	0.0118
FMEX3	−4.372	−0.478	−0.343	−0.188	−0.244	−0.143	−0.111	−0.049	−0.027	−0.137	0.025	0.049

^aCritical values for the ADL model without IVs are based on the t statistic bounds test (unrestricted intercept, no trend) of Pesaran et al. (2001). A t statistic smaller than the I(1) bound of −3.53 (−4.10) indicates significance at the 5% (1%) level. The coefficient italicized in bold font is from the equation that minimizes the sum of the squared residuals