panels valid under cross-section dependence and presence of multiple structural breaks. Our results strongly support the … fulfillment of the weak version of the RIRP for the studied period once dependence and structural breaks are accounted or …

Despite a plethora of studies on purchasing power parity (PPP), those that take a cointegration approach have found … for cointegration between nominal exchange rate and relative prices that accounts for multiple structural breaks. We find …

panel unit root tests to examine PPP for 16 OECD countries. In addition to incorporating structural breaks in the univariate … exchange rate series, we also incorporate structural breaks in the panel exchange rate models. Our main finding from univariate … tests, with and without structural breaks and panel LM test with one break, is that real exchange rates are not stationary …