Revisiting purchasing power parity for G-7 countries using nonparametric rank test for cointegration

Tsangyao Chang, Kuei-Chiu Lee, Yang-Cheng Ralph Lu and Guochen Pan

Applied Economics Letters, 2011, vol. 18, issue 18, 1795-1800

Abstract: This study applies the nonparametric rank test for cointegration, proposed by Breitung (2001), to test the validity of long-run Purchasing Power Parity (PPP) for G-7 countries over the period of January 1980 to January 2009. The empirical results indicate that PPP holds true for all G-7 countries studied and that the nominal exchange rate and the domestic and US Consumer Price Index (CPI) are nonlinearly interrelated with the exception of France and Germany cases. Our results have important policy implications for the G-7 countries under study.

Date: 2011
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1080/13504851.2011.564120 (text/html)
Access to full text is restricted to subscribers.

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:taf:apeclt:v:18:y:2011:i:18:p:1795-1800

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEL20

DOI: 10.1080/13504851.2011.564120

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().