Lo, Ming Chien - In: Studies in Nonlinear Dynamics & Econometrics 12 (2008) 4, pp. 1482-1482
Recent research has generated support of the notion that the real exchange rate adjustment is nonlinear and that the PPP half-life is faster than the puzzling 3 to 5 years based on linear models. While different nonlinear models survive the specification tests against linear ones, there is...
