Showing 1 - 10 of 97
Persistent link: https://www.econbiz.de/10006654426
Long-run purchasing power parity (LRPPP), the basis of most open economy macroeconomic models, has proved difficult to back up empirically. However, there is one standout exception to the otherwise mixed results. are consistently cited as having found strong evidence of LRPPP by using a...
Persistent link: https://www.econbiz.de/10005562103
This paper examines whether inclusion of structural breaks helps resolve the puzzling result of excessively slow speed of convergence in relative prices across US cities while using long time series data on CPI. With an endogenously determined single break in 1985 in annual CPI data for 17 major...
Persistent link: https://www.econbiz.de/10011065308
This paper examines the dynamic behavior of bilateral real exchange rates between India and 16 of its trading partner countries using annual data from 1960 to 2010. We use panel unit root test procedures, with and without structural breaks, to investigate if there is any evidence in India’s...
Persistent link: https://www.econbiz.de/10010929500
Persistent link: https://www.econbiz.de/10010102180
Persistent link: https://www.econbiz.de/10002657950
Persistent link: https://www.econbiz.de/10002658057
Persistent link: https://www.econbiz.de/10002658091
We investigate two alternative versions of Purchasing Power Parity (PPP): reversion to a constant mean in the spirit of Cassel and reversion to a constant trend in the spirit of Balassa and Samuelson, using long-span real exchange rate data for industrialized countries. We develop unit root...
Persistent link: https://www.econbiz.de/10005522004
Persistent link: https://www.econbiz.de/10005527287