Purchasing power parity in OECD countries: Nonlinear unit root tests revisited

The aim of this paper is to provide additional evidence on the purchasing power parity empirical fulfilment in a pool of OECD countries. We apply the Harvey et al. (2008) linearity test and the Kruse (2011) nonlinear unit root test. The results point to the fact that the purchasing power parity theory holds in a greater number of countries than has been reported in previous studies.

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Year of publication:	2013
Authors:	Cuestas, Juan Carlos ; Regis, Paulo José
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 32.2013, C, p. 343-346
Publisher:	Elsevier
Subject:	Real exchange rates \| Purchasing power parity \| Nonlinearities \| Unit root tests

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Type of publication:	Article
Classification:	C32 - Time-Series Models ; F15 - Economic Integration
Source:	RePEc - Research Papers in Economics

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