We test long-run Purchasing Power Parity (PPP) within a general model of cointegration of linear and nonlinear form. Nonlinear cointegration is tested with rank tests of Breitung (2001). We determine first the order of integration of each variable, using monthly data from the post-Bretton Woods...

In this article, we compute the potential welfare gains and the realized gains from risk-sharing among Middle East and North African (MENA) countries, including the oil-rich Gulf region and the resource-scarce economies. We find that the overall potential welfare gains across MENA countries are...