Evidence on the purchasing power parity in a panel of cities
Evidence is provided on the PPP hypothesis using a sample of 50 Spanish cities for a long time period through the application of panel data unit root tests. Although results suggest non-rejection of the PPP, short-run deviations - as measured by half-lives - indicate that real factors might be causing a slow rate of convergence to a common price index, even in highly integrated economies.
Volume (Year): 36 (2004)
Issue (Month): 9 ()
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