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Re-examining the PPP Hypothesis via Nonlinearity and Smooth Breaks

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  • Banu Kurtaran

    (Ankara, Turkey.)

Abstract

This study is investigated the PPP hypothesis for 16 OECD countries by using the newly proposed unit root tests which covers nonlinearity, structural break and nonlinear panel data structure. The results exhibits that the nonlinearity and structural break are important components of the PPP data.

Suggested Citation

  • Banu Kurtaran, 2015. "Re-examining the PPP Hypothesis via Nonlinearity and Smooth Breaks," Econometrics Letters, Bilimsel Mektuplar Organizasyonu (Scientific letters), vol. 2(1), pages 1-21.
  • Handle: RePEc:bmo:bmoart:v:2:y:2015:i:1:p:1-21
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    References listed on IDEAS

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    More about this item

    Keywords

    Smooth Break; Nonlinear Unit Root Test; Nonlinear Panel Unit Test; PPP.;

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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