Crucini, Mario J.; Shintani, Mototsugu; Tsuruga, Takayuki - 2021 - This version: March 2021
At the aggregate level, the evidence that deviations from purchasing power parity (PPP) are too persistent to be explained solely by nominal rigidities has long been a puzzle (Rogoff, 1996). Another puzzle from the micro price evidence of the law of one price (LOP), which is the basic building...