Chang, Tsangyao; Su, Chi-Wei; Lee, Chia-Hao - In: Applied Economics Letters 19 (2012) 12, pp. 1111-1116
This study applied the nonlinear Kapetanios <italic>et al.</italic> (2003) test with a Fourier function (capturing the smooth breaks) to test the validity of long-run Purchasing Power Parity (PPP) for G-7 countries over the period January 1994 to April 2010. The empirical results indicate that PPP holds for all...