 An empirical test of the purchasing power parity for transition economies: Panel SURADF testsYang-Cheng Ralph Lu, Tsangyao Chang, Kuei-Chiu Lee and Han-Wen Tzeng Applied Economics Letters, 2011, vol. 18, issue 17, 1691-1696 Abstract: Purchasing Power Parity (PPP) for transition economies is tested using Panel Seemingly Unrelated Regressions Augmented Dickey-Fuller (SURADF) tests of Breuer et al. (2001) for the period of January 1995 to December 2008. Although the other panel-based unit-root tests are joint tests of a unit root for all members of the panel and are incapable of determining the mix of I(0) and I(1) series in the panel setting, the Panel SURADF tests test a separate unit-root null hypothesis for each individual panel member and therefore identify how many and which series in the panel are stationary processes. The PPP hypothesis is not confirmed for all the nine transition countries except Estonia and Romania when Breuer et al.'s Panel SURADF tests are conducted. Keywords: purchasing power parity; transition economic; Panel SURADFtests (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:apeclt:v:18:y:2011:i:17:p:1691-1696 Ordering information: This journal article can be ordered from DOI: 10.1080/13504851.2011.560102 Access Statistics for this article Applied Economics Letters is currently edited by Anita Phillips More articles in Applied Economics Letters from Taylor & Francis Journals |
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