Banerjee, Anindya; Marcellino, Massimiliano; Osbat, Chiara - In: Empirical Economics 30 (2005) 1, pp. 77-91
A common finding in the empirical literature on the validity of purchasing power parity (PPP) is that it holds when tested for in panel data, but not in univariate (i.e. country-specific) analysis. The usual explanation for this mismatch is that panel tests for unit roots are more powerful than...