‘Testing’ purchasing power parity theory

Created
Wed, 19/07/2023 - 18:21
Updated
Wed, 19/07/2023 - 18:21
Purchasing power parity doctrine is examined by sophisticated statistical and econometric techniques. The time series of aggregated price levels and the nominal exchange rates are treated as a random sample. Most papers of this type deal with the technical properties of the slightly different data sets. To take some examples (at random): “Two potential problems […]