Ryu, Deockhyun; El-Gamal, Mahmoud A. - Econometric Society - 2004
The so-called purchasing-power parity (PPP) puzzle takes one of two forms. In its first form, early tests of the PPP … more recent literature, the literature on the PPP puzzle focused on stochastic real exchange rate models that allow long … second form of the PPP-puzzle have been forthcoming in recent years, mostly by using non-linear stochastic models of real …