LONG-RUN PURCHASING POWER PARITY DURING THE RECENT FLOAT

• 成果类型: Article
• 署名作者: CHEUNG, YW; LAI, KS
• 署名单位: California State University System; California State University Los Angeles; University of California System; University of California Santa Cruz
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/0022-1996(93)90073-7
• 发表日期: 1993
• 页码: 181-192

摘要

This paper examines the relevance of long-run purchasing power parity (PPP), which allows for measurement errors. during the recent floating exchange rate period. Previous empirical studies generally fail to find support for long-run PPP over this period. In this paper the cointegration property of exchange rates and prices is examined using a maximum likelihood procedure. and we find significant evidence favorable to long-run PPP. Further tests for symmetry and proportionality indicate that these two conditions are not generally consistent with the data. The results support the hypothesis of long-run PPP with measurement errors in prices.