Market efficiency, purchasing power parity, and black markets: Evidence from latin american countries
β Scribed by Koveos, Peter E. ;Seifert, Bruce
- Book ID
- 112829364
- Publisher
- Springer
- Year
- 1986
- Tongue
- English
- Weight
- 673 KB
- Volume
- 122
- Category
- Article
- ISSN
- 1610-2924
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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
## ABSTRACT This study applies the threshold unit root test proposed by Caner and Hansen (2001) to test the validity of longβrun purchasing power parity (PPP) in a sample of 15 Latin American countries. These countries share characteristics as high inflation, nominal shocks and trade openness which