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Purchasing power parity for fifteen Latin American countries: Stationary test with a Fourier function

✍ Scribed by Chi-Wei Su; Chang Tsangyao; Hsu-Ling Chang

Book ID: 113664470
Publisher: Elsevier Science
Year: 2011
Tongue: English
Weight: 308 KB
Volume: 20
Category: Article
ISSN: 1059-0560
DOI: 10.1016/j.iref.2011.03.004

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## ABSTRACT This study applies the threshold unit root test proposed by Caner and Hansen (2001) to test the validity of long‐run 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