Analysis of Purchasing power parity with data for Macedonia

This paper examines PPP parity theory with data for Macedonia. We test the empirical consensus in this literature that real exchange rates tend towards PPP in the very long run, also we use co-integration Engle-Granger method and error correction mechanism. The hypothesis we test that PPP theory holds in long run in the case of Macedonia, and this hypothesis is proven to be true.

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Year of publication:	2011-06-01
Authors:	Josheski, Dushko ; Koteski, Cane
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	PPP \| Exchange rate \| Co-integration \| unit root \| stationarity

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	E0 - Macroeconomics and Monetary Economics. General ; G0 - Financial Economics. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10009151566