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Testing the PPP hypothesis for G-7 countries

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  • Yilmaz Akdi
  • Zeynel Abidin Ozdemir
  • Hasan Olgun

Abstract

This article applies the model free, seasonality robust periodogram test, and the conventional augmented Dickey-Fuller (ADF) unit root test to the real exchange rates (RER) of the G-7 countries. The empirical results show that the periodogram test rejects the null of unit root for a larger number of countries compared to the ADF test.

Suggested Citation

  • Yilmaz Akdi & Zeynel Abidin Ozdemir & Hasan Olgun, 2009. "Testing the PPP hypothesis for G-7 countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(1), pages 99-101.
    • Handle: RePEc:taf:apeclt:v:16:y:2009:i:1:p:99-101
    DOI: 10.1080/13504850601018551
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    References listed on IDEAS

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