This paper re-assesses the panel (unit root test) evidence for PPP on four monthly data sets. We discuss and illustrate … that commonly-used first generation panel unit root tests are inappropriate for PPP analysis since they are constructed for … cross-sectionally uncorrelated panels. Given that real exchange rate panel data sets are - almost by construction - highly …

with a sparse spatial autoregressive component for a cross-section data, and a spatial-temporal component for a panel data …

a panel cointegration approach. The main idea behind this choice is that this approach allows to directly estimate …

system and the current managed float. Panel integration techniques are used to increase the power of the tests. Cross section …

degrees, the dependence that might prevail across the different units in the panel. In the analysis of cointegration the …

Panel unit root tests of real exchange rates - as opposed to univariate tests - usually reject non-stationarity. These … correlation matrix affect the size of first and second generation panel unit root tests. Two components of the real exchange rate …, the real exchange rate of a single good and a weighted sum of relative prices, are constructed from the data for a panel …

employs a panel data technique is used. This estimator is suited for integrated annual macroeconomic panel data sets to … explains the concept of panel unit roots and panel cointegration and introduces the underlying empirical approach. Next …

. For these purposes, panel unit root tests are employed to improve power against univariate counterparts. Since cross … section correlation is a distinct feature of the underlying panel data, results are based on various second generation panel …