Detecting intra-national PPP model in China: A median-unbiased estimation approach

Kai-Yin Woo and Shu-Kam Lee

Economic Modelling, 2009, vol. 26, issue 5, 1029-1032

Abstract: This paper studies the speed of price adjustments toward the intra-national PPP level within China based on half-life measurement. We calculate the point estimates of half-lives and the corresponding confidence intervals using median-unbiased estimation methods to correct for downward bias in least squares estimates. The point estimates of half-lives indicate that the speed of mean reversion toward convergence between region pairs is fast. A strong conclusion about the high speed of adjustments is, however, unwarranted in some regions where the confidence intervals for half-life estimates are much wider than others.

Keywords: Intra-national; PPP; model; Half-lives; Median-unbiased; estimation; method (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:26:y:2009:i:5:p:1029-1032

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