Price structure in Mexico: a sectoral disaggregation of impacts from the economic contraction due to COVID-19
DOI:
https://doi.org/10.33937/reveco.2022.273Keywords:
COVID-19, economic impact on prices, hypothetical extraction method, Mexico.Abstract
As a result of the health crisis caused by the COVID-19 pandemic, one of the measures taken by the Mexican federal government was the suspension of some non-essential productive activities. From it, this paper aims to offer an analysis of the affectation that this scenario has brought for the general price level, which is made by utilizing the Hypothetical Extraction Method (HEM) applied to the Input Output Matrix of Mexico updated as of 2019, which allows us to observe at a desegregated level by sectors the impact that origins the reduction of medium supplies and the a desegregated level by sectors the impact that origins the reduction of medium supplies and the intensity of the work in productive activities. The result of this study shows the deflationary effect that is observable in mayor degree in the manufacturing and real estate sectors.
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