Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5086298 | Japan and the World Economy | 2012 | 7 Pages |
Abstract
This study applies a simple and powerful nonlinear unit root test, proposed by Sollis (2009), to test the validity of long-run purchasing power parity (PPP) in a sample of ASEAN countries. The empirical results indicate that PPP only holds for three of these ASEAN countries studied, and the adjustment toward PPP is found to be nonlinear and asymmetric.
⺠We examine the validity of long-run purchasing power parity for ASEAN countries. ⺠We apply a simple and powerful nonlinear unit root test. ⺠The results indicate that PPP only holds for three of these ASEAN countries. ⺠These results imply the adjustment toward PPP is nonlinear and asymmetric.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Tsangyao Chang, Chia-Hao Lee, Wen-Chi Liu,