Cuestas, Juan Carlos; Monfort, Javier Ordoñez; Olivas, … - Instituto Valenciano de Investigaciones Económicas (IVIE) - 2006
The aim of this article is to provide additional evidence on the fulfilment of the Purchasing Power Parity hypothesis in the so-called Mediterranean countries. In order to test for the empirical validity of such hypothesis, we have applied two types of unit root tests. The first group is due to...