Purchasing power parity in OECD countries: Nonlinear unit root tests revisited

Juan Cuestas and Paulo Regis

Economic Modelling, 2013, vol. 32, issue C, 343-346

Abstract: The aim of this paper is to provide additional evidence on the purchasing power parity empirical fulfilment in a pool of OECD countries. We apply the Harvey et al. (2008) linearity test and the Kruse (2011) nonlinear unit root test. The results point to the fact that the purchasing power parity theory holds in a greater number of countries than has been reported in previous studies.

Keywords: Real exchange rates; Purchasing power parity; Nonlinearities; Unit root tests (search for similar items in EconPapers)
JEL-codes: C32 F15 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (17)

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Working Paper: Purchasing power parity in OECD countries: nonlinear unit root tests revisited (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:32:y:2013:i:c:p:343-346

DOI: 10.1016/j.econmod.2013.01.035

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