The purchasing power parity hypothesis tested once again: new empirical evidence for 28 OECD countries
The present study is aimed at examining the validity of the purchasing power parity hypothesis for 28 OECD countries over the period 1960Q1-2021Q4. To reach this goal, we apply three methods evaluating whether the real exchange rates are stationary: The traditional unit root tests in time series, th...
| Autores: | , |
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| Tipo de documento: | artigo |
| Data de publicação: | 2022 |
| País: | España |
| Recursos: | Universidad Complutense de Madrid (UCM) |
| Repositório: | Docta Complutense |
| Idioma: | inglês |
| OAI Identifier: | oai:docta.ucm.es:20.500.14352/104626 |
| Acesso em linha: | https://hdl.handle.net/20.500.14352/104626 |
| Access Level: | Acceso aberto |
| Palavra-chave: | C22 C23 F31 Purchasing power parity Unit roots Time series Panel data Econometría (Economía) Economía internacional Estructura económica 5302 Econometría 5307.12 Teoría del Comercio Internacional 53 Ciencias Económicas |
| Resumo: | The present study is aimed at examining the validity of the purchasing power parity hypothesis for 28 OECD countries over the period 1960Q1-2021Q4. To reach this goal, we apply three methods evaluating whether the real exchange rates are stationary: The traditional unit root tests in time series, the panel unit root tests, and nonlinear unit root tests based on OLS and GLS detrending. The findings suggest that the purchasing power parity hypothesis does not hold even if the assessment considers nonlinear adjustment. |
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