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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19474| Title: | PPP: a Disaggregated View |
| Keywords: | C33 F31 ddc:330 purchasing power parity real exchange rate panel unit root tests Kaufkraftparität Preisindex Aggregation Schätzung Theorie OECD-Staaten |
| Issue Date: | 16-Oct-2013 |
| Description: | By disaggregating price indices, it becomes apparent that the real exchange rate consists of the real exchange rate for a single good and a weighted sum of relative prices between goods. When applying a battery of panel unit root tests to this sum and its components, it is found that both the sum and the relative prices are non-stationary. This implies that PPP is invalid even if the LOP holds for all goods. The findings contrast with the result from panel unit root tests that real exchange rates as a whole are stationary. Several suggestions for solving the conflict are discussed. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19474 |
| Other Identifiers: | http://hdl.handle.net/10419/19474 ppn:385183461 RePEc:zbw:bubdp1:1820 |
| Appears in Collections: | EconStor |
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