Testing PPP for Central American real exchange rates. Evidence from new panel data stationary tests with structural breaks
The new panel data stationary test with multiple structural breaks developed by Carrion-i-Silvestre, Del Barrio-Castro and Lopez-Bazo (2005) is used along with standard stationary tests to study the long-run PPP hypothesis in a set of six Central American countries for the period 1976:1-2006:4. Contrary to standard tests, this new procedure provides strong support for PPP.
Volume (Year): 6 (2008)
Issue (Month): 21 ()
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