The article is aimed at empirical investigation of the relative version of the purchasing power parity (PPP). It attempts to shed some light on the so-called ´PPP puzzle´ for selected countries in the CEE region a nd Turkey. Because of ambiguous results in the literature, various econometrics...

This paper is focused on testing the relative version of the purchasing power parity (PPP). It tries to shed light on this so called “PPP puzzle” for a set of transition countries – twelve new EU Member States. Since results of similar studies in the literature have been ambiguous, a set...

A novel procedure to test for unit root in a nonlinear framework is proposed by first introducing a new model – the MT-STAR model – which has similar properties as the ESTAR model but reduces the effects of the identification problem and can also account for cases where the adjustment...

In this paper, we propose Phillips-Perron type, semiparametric testing procedures to distinguish a unit root process from a mean-reverting exponential smooth transition autoregressive one. The limiting nonstandard distributions are derived under very general conditions and simulation evidence...

In this paper, we propose Phillips-Perron type, semiparametric testing procedures to distinguish a unit root process from a mean-reverting exponential smooth transition autoregressive one. The limiting nonstandard distributions are derived under very general conditions and simulation evidence...