van Dijk, Mathijs A.; Koedijk, Koedijk, C.G.; Tims, Tims, B. - Erasmus Research Institute of Management (ERIM), … - 2005
estimation and testing. More specifically, power functions are low and assume irregular shapes. Furthermore, homogeneous …This paper analyzes the properties of multivariate tests of purchasing power parity (PPP) that fail to take … on the validity of the PPP hypothesis. Our findings highlight the importance of allowing for heterogeneous estimation …