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Previous findings of long-run purchasing power parity come mainly from data for industrial countries, raising the issue …
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Previous findings of long-run purchasing power parity come mainly from data for industrial countries, raising the issue …
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In this paper, we propose Phillips-Perron type, semiparametric testing procedures to distinguish a unit root process from a mean-reverting exponential smooth transition autoregressive one. The limiting nonstandard distributions are derived under very general conditions and simulation evidence...
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