Carvalho, Miguel de; Julio, Paulo - Gabinete de Estratégia e Estudos (GEE), Ministério da … - 2010
We use several popular tests to test the validity of the Purchasing Power Parity (PPP) hypothesis. In particular, we analyze four classes of tests { standard univariate unit root tests, co-integration, panel unit root tests and unit root tests for nonlinear frameworks {, for a dataset consisting...