Testing the validity of quasi PPP hypothesis: evidence from a recent panel unit root test with structural breaks

Testing the validity of quasi PPP hypothesis: evidence from a recent panel unit root test with structural breaks

In this article we test the validity of quasi Purchasing Power Parity (PPP) hypothesis for 18 Turkish real exchange rate series using a panel unit root test that allows for structural breaks in the level and the trend. Test results based on a long span of data find evidence of the validity of quasi...

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Veröffentlicht in:Applied economics letters 2011-12, Vol.18 (18), p.1817-1822
Hauptverfasser: Guloglu, Bulent, Ispira, Serdar, Okat, Deniz
Format: Artikel
Sprache:eng
Schlagworte:
Applied economics
Economic analysis
Economic models
Exchange rates
Foreign exchange rates
Hypotheses
Hypothesis
Purchasing power parity
real exchange rate
structural breaks
Studies
Unit root
Validity
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Zusammenfassung:In this article we test the validity of quasi Purchasing Power Parity (PPP) hypothesis for 18 Turkish real exchange rate series using a panel unit root test that allows for structural breaks in the level and the trend. Test results based on a long span of data find evidence of the validity of quasi PPP hypothesis for almost all the exchange rate series under study and for the whole of panel as well.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2011.564124