On the stationarity of Japanese-yen based purchasing power parity in the presence of the structural breaks
AbstractIn this paper we perform the stationarity test on the Japanese-yen based real exchange rate of major trade partners of Japan, and we investigate the existences of relative PPPs with these countries and areas. The empirical analyses support that relative PPPs with the United States, Germany (with marks and euro), Korea and Taiwan are upheld when we consider the constant, linear trend and structural breaks. However, relative PPP is not upheld with China (Mainland).
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 30 (2010)
Issue (Month): 1 ()
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real exchange rate; relative PPP; stationarity; KPSS test; structural breaks;
Find related papers by JEL classification:
- F3 - International Economics - - International Finance
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