Lee, Cheng-Feng; Tsong, Ching-Chuan - In: Applied Economics 43 (2011) 15, pp. 1923-1933
This article employs Hansen's (1995) Covariate Augmented Dickey-Fuller (CADF) test to reexamine the issue of Purchasing Power Parity (PPP) using post-Bretton Woods exchange rate data for 20 industrialized countries. Instead of just using a single covariate as in the literature, we implement the...