Purchasing Power Parity in the Long Run: An Empirical Re-Evaluation of the South African Evidence

T de Wet

Studies in Economics and Econometrics, 2000, vol. 24, issue 2, 19-34

Abstract: Purchasing Power Parity is a very important equilibrium concept in macroeconomics. Although the concept of purchasing power parity equilibrium is widely used in the academic, public and business sector, the actual existence of purchasing power equilibrium between countries is widely debated. The continuous development of methods to analyse the properties of time series data has contributed to this debate. In this paper, the purchasing power parity equilibrium between South Africa and its major trading partners is tested with some of the recent methods to analyse whether time series data converges towards equilibrium. The conclusion that is reached is that a purchasing power parity equilibrium do exist in the long run, but that this equilibrium breaks down over the short run.

Date: 2000
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/03796205.2000.12129268 (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:rseexx:v:24:y:2000:i:2:p:19-34

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsee20

DOI: 10.1080/03796205.2000.12129268

Access Statistics for this article

Studies in Economics and Econometrics is currently edited by Willem Bester

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