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ROGELIO HUERTA QUINTANILLA & IVAN MENDIETA MUÑOZ

The current paper aims to appraise the role of costs and demand in determining manufacturing prices in Mexico using modern time-series econometric techniques for the period of 1996 to 2007. Therefore, as a piece of econometric work, the paper tries to provide an insight into the dynamics of manufacturing pricing in Mexico. This might be of particular relevance since in recent years and for the Mexican economy there have been few studies dealing with the matter at issue.