Darne, Olivier; Hoarau, Jean-Francois - In: Applied Economics Letters 15 (2007) 3, pp. 203-206
The unit root test with structural break developed by Perron and Rodriguez are used to study the purchasing power parity (PPP) in the spirit of Balassa-Samuelson in Australia for the period January 1977 to April 2004. The results indicate that there is a break in February 1985 which coincides...