Cities, Borders, Distances, Non-traded Goods and Purchasing Power Parity

Michael Jenkins

Oxford Bulletin of Economics and Statistics, 1997, vol. 59, issue 2, 203-13

Abstract: Most empirical studies for the post Bretton Woods period fail to find evidence of a long-run Purchasing Power Parity (PPP) relationship. An investigation into the failure of PPP is made in this study by using disaggregated price data. This disaggregation is on two levels: location (prices from US and Canadian cities rather than national aggregates) and type of goods (e.g., fuel oil, a tradable commodity and local public transportation, a non-tradable). This disaggregation allows for the testing of the importance of borders (implying an exchange rate), distances, and types of goods in the failure of PPP. The analysis conducted suggests that both country borders and distances play a significant role. However, there is mixed evidence concerning type of goods as an important determinant of the failure of PPP. Copyright 1997 by Blackwell Publishing Ltd

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (17)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:obuest:v:59:y:1997:i:2:p:203-13

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0305-9049

Access Statistics for this article

Oxford Bulletin of Economics and Statistics is currently edited by Christopher Adam, Anindya Banerjee, Christopher Bowdler, David Hendry, Adriaan Kalwij, John Knight and Jonathan Temple

More articles in Oxford Bulletin of Economics and Statistics from Department of Economics, University of Oxford Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().