Abstract
Assessing Convergence to Purchasing Power Parity: A Panel Study for 10 OECD Countries. — The paper analyzes whether post-Bretton Woods real exchange rates of ten OECD countries are nonstationary so that long-run purchasing power parity (PPP) can be considered to hold. A test procedure is proposed which treats the various real exchange rates as a panel but still allows to assess the rate of convergence to PPP for each pair of currencies separately. It is shown that long-run (tradables-) PPP holds between all countries analyzed. Rates of convergence to PPP, however, are found to be quite different across countries. For most of the OECD countries convergence takes place faster than previously indicated.
Zusammenfassung
Gibt es eine Konvergenz zur Kaufparität? Eine Panel-Untersuchung für 10 OECD-Länder. — Der Verfasser untersucht, ob die realen Wechselkurse nach Bretton Woods für 10 OECD-Länder nichtstationär sind, so daß die Hypothese einer langfristigen Kaufkraftparität (PPP) als haltbar angesehen werden kann. Für den Test wird ein Vorgehen empfohlen, bei dem die verschiedenen realen Wechselkurse als ein Panel behandelt werden, das es aber trotzdem erlaubt, die Konvergenzrate zur PPP für jedes Länderpaar getrennt zu beurteilen. Es zeigt sich, daß die Hypothese einer langfristigen PPP (für handelbare Güter) zwischen allen analysierten Ländern haltbar ist. Allerdings erweisen sich die Konvergenzraten zur PPP als ganz verschieden von Land zu Land. Für die meisten OECD-Länder erfolgt die Konvergenz schneller als bisher angenommen.
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Meier, CP. Assessing convergence to purchasing power parity: A panel study for ten OECD countries. Weltwirtschaftliches Archiv 133, 297–312 (1997). https://doi.org/10.1007/BF02707465
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DOI: https://doi.org/10.1007/BF02707465