Paridad del Poder Adquisitivo en el Tipo de Cambio Argentino (Peso/Dólar)

Néstor Le Clech ()

Económica, 2007, vol. LIII, issue 1-2, 101-125

Abstract: The article develops for the Argentine case the model of the determination of the exchange rate known as “Purchasing Power Parity” (PPP), adopting as reference the exchange rate with the US dollar. The PPP hypothesis is analyzed utilizing annual data from 1948 through 2006. A bivariate and trivariate model of cointegration is employed, and an error correction mechanism is used in order to estimate the adjustment velocity towards PPP. Positive evidence is found favorable to cointegration and we verify the PPP hypothesis in its absolute version. Moreover, we note that the average velocity of adjustment is around 3 years.

Keywords: PPP; PPP Argentine; Purchasing Power Parity; Equilibrium Excange Rate (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 2007
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Journal Article: Paridad del Poder Adquisitivo en el Tipo de Cambio Argentino (Peso/Dólar) (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:akh:journl:558

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