Chang, Tsangyao; Su, Chi-Wei; Liu, Yu-Shao - In: Applied Economics Letters 19 (2012) 9, pp. 839-842
This study applies a simple and powerful nonlinear threshold unit root test proposed by Caner and Hansen (2001) to test the validity of long-run Purchasing Power Parity (PPP) in a sample of nine East Asian countries. The empirical results indicate that PPP holds true for more than half of these...