Testing for nominal convergence in the Central American area: evidence from panel data unit-root tests

Inflation convergence between the Central American Area and the United States is investigated using both recent homogeneous and heterogeneous panel data unit-root methods. Strong rejections of unit-root hypothesis are found, and therefore evidence of Purchasing Power Parity, in the Central American countries for the 1981:1-2005:4 period. Then by considering the nominal convergence criterion, the dollarization system seems to be suited to this region.

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Year of publication:	2009
Authors:	Hoarau, Jean-Francois ; Blancard, Stephane ; Jean-Pierre, Philippe
Published in:	Applied Economics Letters. - Taylor & Francis Journals, ISSN 1350-4851. - Vol. 16.2009, 11, p. 1171-1174
Publisher:	Taylor & Francis Journals

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004966508