Testing for inflation convergence between the Euro Zone and its CEE partners

Inflation convergence between the Euro Zone and its CEE partners is investigated using panel data methods that incorporate structural shifts. Strong rejections of the unit root hypothesis are found, and therefore evidence of PPP, in the East-European countries for the 1995:1 to 2000:4 period.

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Veröffentlicht in:Applied economics letters 2006-03, Vol.13 (4), p.235-240
Hauptverfasser: Drine, Imed, Rault, Christophe
Format: Artikel
Sprache:eng
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Zusammenfassung:Inflation convergence between the Euro Zone and its CEE partners is investigated using panel data methods that incorporate structural shifts. Strong rejections of the unit root hypothesis are found, and therefore evidence of PPP, in the East-European countries for the 1995:1 to 2000:4 period.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504850500396322