According to the Purchasing Power Parity {(PPP)} theory, real exchange rate fluctuations are mainly caused by … transitory shocks. The theory fits well one empirical feature of the data, namely the short-run volatility of real exchange rates …, the results show that the data are not inconsistent with the {PPP} theory, although we cannot provide conclusive evidence …

purchasing power parity are both substantial and persistent. Two explanations of these deviations have been advanced in the … literature. One emphasizes the role of changes in non-traded goods prices while the other views deviations from purchasing power … explanation of deviations from purchasing power parity — they may be necessary in order to facilitate the relative price changes …

rate model, namely: differences in the theoretical underpinnings; differences in the econometric estimation techniques; and …

as a long-run equilibrium condition. Further, breaks in the series are endogenously determined using a procedure based on … disturbances, are in the majority of cases inconsistent with PPP, even more so when breaks are incorporated: Argentina is the only …

aggregates in purchasing power standard. This result is influence not only own performance, but also performances others …

This book deals with the currently most relevant topics in price index numbers theory and practice. The problem of the … Purchasing Power Parities (PPPs) and CPIs. Likewise, the construction of sub-indexes for households, economic and social groups … international comparisons of macroeconomic aggregates, a re-consideration of index numbers theory, the measurement of production in …

variables. Estimation and interpretation of such models can be enhanced if zero restrictions are allowed in the coefficient … matrices. Conventional use of full-order models may weaken the power of statistical inferences due to over … paper examines the relationship between the money supply and the Euro and provides a test of purchasing power parity (PPP …

entries has not been fully discussed in cointegration theory. In such cases, the use of standard VECM models may lead to … studies to demonstrate the usefulness of the alogrithm in tests of purchasing power parity and a three-variable system …

This paper provides a test of purchasing power parity (PPP) as an explanation for longterm foreign exchange rate … restrictions flowing from the absolute form of purchasing power parity (PPP) as well as applying the less restrictive Johansen test …