An estimation exercise for the CPI GBA for 2007

Abstract

The comparison between Gran Buenos Aires’s IPC and Mendoza’s ICP is possible thanks to the extensive series Mendoza offers. First of all, an estimation of each index is made in order to analyze IPCGBA’s and IPCMZA’s series and to evaluate the existence of coincidences in their behavior as to make an estimation of one of them based on the other. Secondly, it is made a try to show the change in the behavior of IPCGBA from January 2007. It is concluded that it is possible to consider the IPCGBA as a function of the IPCMZA. Monthly and quarterly estimations are carried out in which binary variables are added to show the structural change. This work shows that the index of prices series present an important correlation.