On the Specification of the PPP Hypothesis
This paper presents a critique of the theoretical and empirical work on the PPP hypothesis since it was formalised by Cassel early this century. Two issues are addressed: the distinction between absolute and relative PPP, and between short-run and long-run PPP. It is argued that the distinction between absolute and relative PPP is redundant, fundamentally flawed and only emerged out of the misinterpretation of Cassel by his contemporaries and subsequent economists. It is also argued that the distinction between short-run and long-run PPP has not been dealt with properly in the literature, and has been confused with the distinction between absolute and relative PPP. It is concluded that the distinction between absolute and relative PPP should be abandoned and that economists should utilise some dynamic specifications that encompass short-run and long-run PPP.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 51 (1998)
Issue (Month): 3 ()
|Contact details of provider:|| Postal: |
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/ModulisticaEmail:
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0298. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Procopio)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.