Asymmetric adjustment towards long-run PPP: Some new evidence for Asian economies

Mark Holmes () and Ping Wang

International Economic Journal, 2006, vol. 20, issue 2, 161-177

Abstract: This paper investigates relative purchasing power parity for a sample of nine Asian economies during the post-Bretton Woods floating exchange rate era. While most existing studies of purchasing power parity employ linear tests of non-stationarity or non-cointegration, we employ a new cointegration test, recently advocated by Enders & Siklos and Enders & Dibooglu, that tests for an asymmetric adjustment towards parity with respect to positive and negative real exchange rate deviations from parity. In most cases, we find that long-run purchasing power parity is most likely to hold with respect to positive deviations only.

Keywords: PPP; cointegration; asymmetries (search for similar items in EconPapers)
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/10168730600699481 (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:intecj:v:20:y:2006:i:2:p:161-177

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RIEJ20

DOI: 10.1080/10168730600699481

Access Statistics for this article

International Economic Journal is currently edited by Jaymin Lee Editor

More articles in International Economic Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().