This article examines the PPP hypothesis, i.e. the proposition that the real exchange rates are stationary, in the case … prices and unit labor costs. The results of unit-root tests show that globally there is little evidence to support PPP, i … PPP with consumer prices is only verified between France and Germany. Whether the country is a member of the snake and …

other studies, introduces a bias against finding evidence of PPP. The bias is illustrated using unit root tests applied to …

This paper examines the validity of both the short-run and long-run purchasing power parity (PPP) hypotheses in Japan … long-run. On the other hand, from the second test, we found that there is a strongly robust long-run PPP relationship but … no significant short-run PPP relationship. Furthermore, unlike the previous literature, this paper confirms the stability …

-5 year half-lives of deviations from PPP. These half-life estimates, however, are based on estimates from regressions where … using efficient unit root tests on longer term data, this information moves us away from solving the PPP puzzle. …

the decade 1999-2009. The literature has recently arrived to a solution to the two PPP puzzles if considering the post …

shifting mean using monthly data for Mexico, 1969-2010. Because such shifts coincide with trade liberalization in Mexico, we …