Papell, David H. - In: Journal of Money, Credit and Banking 38 (2006) 2, pp. 447-467
Does long-run purchasing power parity (PPP) hold over the post-1973 floating exchange rate period? Panel unit root tests provide evidence of PPP that increases with the number of observations. The strengthening of the evidence, however, is highly cyclical. When the dollar appreciates at the end...