Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 15, 2010 erstellt
Beschreibung:
We investigate the empirical support to the Purchasing Power Parity hypothesis by using sixteen real exchange rates for the decade 1999-2009. The literature has recently arrived to a solution to the two PPP puzzles if considering the post-Bretton Woods period from 1975 to 1998. Time series-based studies consider few cases, while panel based studies have been recently criticized. Multivariate and panel co-integration, and nonlinear models are here implemented. The theory is rejected and both the puzzle remain unsolved if considering a linear structure, while a nonlinear scenario seems to allow for a partial solution to the first puzzle