Purchasing Power Parity: The Empirical Evidence

Imad A. Moosa and Razzaque H. Bhatti
Additional contact information
Imad A. Moosa: La Trobe University
Razzaque H. Bhatti: University of Azad Jammu and Kashmir

Chapter 10 in International Parity Conditions, 1997, pp 213-238 from Palgrave Macmillan

Abstract: Abstract The empirical validity of PPP has been tested for a large number of currencies under both fixed and flexible exchange rates. For this purpose researchers have employed a variety of estimation techniques, various model specifications and sample data with varying frequency and time horizons. Evidence on PPP can be classified under the following main headings: (i) evidence from the flexible exchange rates of the 1920s; (ii) evidence from post-Bretton Woods flexible exchange rates; (iii) evidence from the EMS and other European countries’ exchange rates; (iv) evidence from the exchange rates of other countries; (v) evidence from long-run data (ignoring changes in exchange rate regimes); and (vi) evidence on the ‘augmented’ PPP. Obviously, overlapping in this kind of classification is inevitable.

Keywords: Exchange Rate; Real Exchange Rate; Cointegration Test; Error Correction Model; Exchange Rate Regime (search for similar items in EconPapers)
Date: 1997
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-1-349-25523-8_10

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349255238

DOI: 10.1007/978-1-349-25523-8_10

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().