We propose a new pooled panel unit root test allowing for serial and contemporaneous correlation. The new test combines Elliott, Rothenberg and Stock's (1996) local-to-unity transformation with a pooled panel ADF test. As initially advocated by O'Connell (1998), the new test accounts for...

This paper investigates the PPP hypothesis within industrialized countries for the post-Bretton Woods period via two panel unit root tests, the DF-GLS-SUR and the ADF-SUR tests, respectively developed by Lopez (2005) and Levin, Lin and Chu (2002). Both approaches allow for data specific serial...