Recent advances in testing for the validity of Purchasing Power Parity (PPP) focus on the time series properties of … to which cross-section units are stationary. As a consequence, a reservation for PPP analyses based on such tests is that … a small number of real exchange rates in a given panel may drive the results. In this paper we examine the PPP …

estimation is based on a commonly used economic approach, but with a wider and more up-to-date coverage of data and a more …

Existing studies generally reject purchasing power parity (PPP) on datasets from countries that have been affected by … large real shocks, including Norway. However, we offer strong evidence of PPP between Norway and its trading partners during … appears remarkably consistent with the PPP theory. Moreover, convergence towards PPP is relatively fast; the half-life of a …

) to test the strong PPP hypothesis during the recent ‡oat period on data for the G7 countries. This method is robust in … matter in various cases, the overall results are the same across approaches: The strong PPP hypothesis is forcefully rejected … in favor of the weak PPP hypothesis with heterogeneous cointegrating vectors. As a consequence, the strong PPP hypothesis …

The effect of the single currency on the Purchasing Power Parity (PPP) hypothesis is examined in this study for the 15 … tests are employed on the time series dimension. Unit root tests reject PPP and the highest half-lives are observed after … tests fail to support PPP whereas panel unit root tests fail to reject PPP for the whole sample and for the period before …