Koedijk, C.G.; Tims, B.; Dijk, M.A. van - Erasmus Research Institute of Management (ERIM), ERIM … - 2004
This paper analyzes purchasing power parity (PPP) for the euro area. We study the impact of the introduction of the … euro in 1999 on the behavior of real exchange rates. We test the PPP hypothesis for a panel of real exchange rates within … the euro area over the period 1973-2003. Our methodology exploits the cross-sectional dependence across real exchange …