Wu, Jyh-Lin; Cheng, Su-Yin; Hou, Han - In: International Review of Economics & Finance 20 (2011) 2, pp. 257-266
Using data from 76 countries, this paper investigates the relationship between country characteristics and the validity of purchasing power parity (PPP). Several interesting results are obtained based on dollar-based exchange rates. First, PPP holds for Africa and Latin America. Further, PPP...