Bahmani-Oskooee, Mohsen; Kutan, Ali M.; Zhou, Su - In: Global Business and Economics Review 11 (2009) 1, pp. 19-27
In this paper, we test Purchasing Power Parity (PPP) by applying a new unit root test that allows for nonlinearity in the data to the real exchange rates, constructed with a century of data of 20 countries from Taylor (2002). The problem of lag selection has been taken into account in testing as...
