Article ID Journal Published Year Pages File Type
5062598 Economics Letters 2007 6 Pages PDF
Abstract

We test for Purchasing Power Parity (PPP) in the G7 area for the post-Bretton Woods period. Unlike previous studies, we correct the critical values of the standard unit root test using a wild bootstrap technique. Our findings reject PPP, thus enhancing the contribution of the recent non-linear PPP literature.

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Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Testing for Purchasing Power Parity correcting for non-normality using the wild bootstrap
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