Several recent studies have found evidence of purchasing power parity by using long time series of data to combat the low power of unit root tests. The ability to reject unit roots in real exchange rates, however, only implies that PPP holds in the absence of structural change. We test for multiple
β¦ LIBER β¦
Purchasing Power Parity
β Scribed by Mark P. Taylor
- Book ID
- 108534695
- Publisher
- John Wiley and Sons
- Year
- 2003
- Tongue
- English
- Weight
- 114 KB
- Volume
- 11
- Category
- Article
- ISSN
- 0965-7576
No coin nor oath required. For personal study only.
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This paper examines the information on future exchange rate movements provided by the doctrine of purchasing power parity (PPP). Previous research has studied this issue by analysing the time-series properties of period-by-period levels of, or changes in, exchange rates. In contrast, the present stu