Papell, David H.; Prodan, Ruxandra - In: Journal of Money, Credit and Banking 38 (2006) 5, pp. 1329-1349
We investigate two alternative versions of Purchasing Power Parity (PPP): reversion to a constant mean in the spirit of Cassel and reversion to a constant trend in the spirit of Balassa and Samuelson, using long-span real exchange rate data for industrialized countries. We develop unit root...