Hegwood, Natalie D; Papell, David H - In: International Journal of Finance & Economics 3 (1998) 4, pp. 279-89
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...