On the functional form of PPP: the case of nine new EU countries

Yu Hsing

Applied Financial Economics Letters, 2008, vol. 4, issue 6, 389-393

Abstract: This article applies the extended Box–Cox model to test functional forms of purchasing power parity (PPP) for nine new EU countries. It finds that the widely used double-log form for PPP can be rejected for eight countries except for the Czech Republic and that the unitary elasticity can be rejected for eight countries except for Slovenia. Hence, most countries have a nonlinear functional form of PPP and exhibit a nonunitary elasticity.

Date: 2008
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/17446540701765225 (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:raflxx:v:4:y:2008:i:6:p:389-393

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rafl20

DOI: 10.1080/17446540701765225

Access Statistics for this article

Applied Financial Economics Letters is currently edited by Anita Phillips

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