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Real Exchange Rate between Cordoba and Buenos Aires
The objective of this work is to study the differences in the price structure between Córdoba and Buenos Aires. In general terms, the higher cost of living in Buenos Aires than in the interior of the country. Due to the high integration of national regional markets, tradable goods do not present maj...
The objective of this work is to study the differences in the price structure between Córdoba and Buenos Aires. In general terms, the higher cost of living in Buenos Aires than in the interior of the country. Due to the high integration of national regional markets, tradable goods do not present major price discrepancies, which are observed in nontradables. The terms of trade and productivity differences between regions, through their impact on relative wages, stand out as the main determinant of the Real Exchange Rate. To a lesser extent, asymmetries in public policies and differences in population densities also have an impact on the regional price structure.
