Socioeconomic Factors and Its Influence in Vertical Price Transmission: The Case of the Mexican Tortilla Industry
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The present document provides evidence of how prices along the Mexican Tortilla Industry are related and co-integrated, furthermore it attempts to derive a formal relationship between market integration and socioeconomic variables that affects transaction costs and therefore price transmission. Although not conclusive, it sets the ground for further steps on achieving such objective by implementing more advanced techniques.