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Does the real interest parity hypothesis hold? Evidence for developed and emerging markets

✍ Scribed by Alex Luiz Ferreira; Miguel A. León-Ledesma


Book ID
116658791
Publisher
Elsevier Science
Year
2007
Tongue
English
Weight
283 KB
Volume
26
Category
Article
ISSN
0261-5606

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## Abstract We examine the purchasing power parity (PPP) hypothesis using a unique panel of monthly data on black market exchange rates for 34 emerging market economies. We apply a large number of recent heterogeneous panel unit root and cointegration tests. Panel unit root tests reject mean revers