The absolute deterministic version of purchasing power parity (PPP), in which nominal exchange rates move precisely to offset changes in aggregate price levels between national economies, is not generally supported by empirical evidence. Testing PPP with standard regression models permits some...

The demand for international telephone calls in Australia is comprised of three s ervices with three distinct prices. In order to estimate elasticities for both tariffs and surcharges, an econometric model is developed t hat has two submodels, each of which consists of an aggregate equatio n and...

We consider the problem of forecasting a stationary time series when there is an unknown mean break close to the forecast origin. Based on the intercept-correction methods suggested by Clements and Hendry (1998) and Bewley (2003), a hybrid approach is introduced, where the break and break point...