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Purchasing Power Parity By sectors From Selected European Countries: Cointegration and Structural Breaks

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  • Amalia Morales Zumaquero

Abstract

In this paper we study the long-run Purchasing Power Parity (PPP) hypothesis by traded and non-traded sectors using cointegration techniques in the presence of structural breaks, for a set of European countries during the period 1975:1-1995:12. This approach is complementary to many existing approaches to investigate the PPP Hypothesis. We find evidence in favor of long-run PPP hypothesis when commodity prices and used in the presence of structural breaks. This result lends support to the integration process in the European Union. [C22, F30]

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  • Amalia Morales Zumaquero, 2002. "Purchasing Power Parity By sectors From Selected European Countries: Cointegration and Structural Breaks," International Economic Journal, Taylor & Francis Journals, vol. 16(4), pages 107-119.
    • Handle: RePEc:taf:intecj:v:16:y:2002:i:4:p:107-119
    DOI: 10.1080/10168730200000031
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