Purchasing power parity in transition countries : panel stationary test with smooth and sharp breaks

Mohsen Bahmani-Oskooee, Tsangyao Chang and Tsung-Pao Wu

This study examines whether the long-run purchasing power parity (PPP) holds in transition economies (Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Poland, Romania and Russia) using monthly data over the 1995 - 2011 period. We apply a recently introduced panel stationary test, which accounts for sharp breaks and smooth shifts. The results indicate that the PPP holds only in two countries (i.e., Lithuania and Poland).

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Year of publication:	2015
Authors:	Bahmani-Oskooee, Mohsen ; Chang, Tsangyao ; Wu, Tsung-pao
Subject:	purchasing power parity \| transition countries \| panel stationary test \| sharp breaks and smooth breaks \| Fourier function \| Kaufkraftparität \| Purchasing power parity \| Panel \| Panel study \| Strukturbruch \| Structural break \| Einheitswurzeltest \| Unit root test \| Statistischer Test \| Statistical test \| Transformationsstaaten \| Transition countries \| Schätzung \| Estimation \| Kointegration \| Cointegration \| Stochastischer Prozess \| Stochastic process

Extent:	graph. Darst.
Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.3390/ijfs3020153 [DOI] hdl:10419/167780 [Handle]
Classification:	C22 - Time-Series Models ; F31 - Foreign Exchange
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011308453