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Home bias and deviations from purchasing power parity

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Author Info
Mylonidis, Nikolaos

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Abstract

Empirical analysis has produced mixed results in testing for PPP. This note presents a simple model linking home bias towards home-produced tradable goods with deviations from absolute PPP. We show that this bias constitutes a significant determinant of PPP deviations.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4S80XCM-2/2/a0053f591db61f395b1adb9357434aec
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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 101 (2008)
Issue (Month): 1 (October)
Pages: 38-40
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Handle: RePEc:eee:ecolet:v:101:y:2008:i:1:p:38-40

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Web page: http://www.elsevier.com/locate/ecolet

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Related research
Keywords: PPP Home bias Panel data;

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This page was last updated on 2009-12-12.

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