Nonlinear adjustment to purchasing power parity with flexible Fourier function in G-7 countries

作者：Chang, Tsangyao; Su, Chi Wei^*; Lee, Chia Hao

来源：Applied Economics Letters, 2012, 19(12): 1111-1116.

DOI：10.1080/13504851.2011.615725

• purchasing power parity
• G-7 countries
• nonlinear KSS test
• Fourier function
• smooth breaks

This study applied the nonlinear Kapetanios et al. (2003) test with a Fourier capturing the smooth breaks) to test the validity of long-run Purchasing Power Parity (PPP) for G-7 countries over the period January 1994 to April 2010. The empirical results indicate that PPP holds for all the G-7 countries studied. Our results have important policy implications for the G-7 countries under study.

• 出版日期2012
• 单位厦门大学