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Testing PPP for Central American real exchange rates. Evidence from new panel data stationary tests with structural breaks

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  • Jean-François Hoarau

    (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion)

Abstract

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.

Suggested Citation

  • Jean-François Hoarau, 2008. "Testing PPP for Central American real exchange rates. Evidence from new panel data stationary tests with structural breaks," Post-Print hal-01243481, HAL.
    • Handle: RePEc:hal:journl:hal-01243481
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    References listed on IDEAS

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    Cited by:

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    • F3 - International Economics - - International Finance

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