Cuestas, Juan Carlos; Gil-Alana, Luís A. - Nottingham Trent University, Nottingham Business … - 2009
The aim of this paper is to analyse the empirical fulfilment of the Purchasing Power Parity (PPP) theory for the Australian dollar. In order to do so we have applied recently developed unit root tests that account for asymmetric adjustment towards the equilibrium (Kapetanios et al., 2003) and...