Purchasing power parity for East-Asia countries: further evidence based on panel stationary test with multiple structural breaks

C-Tier
Journal: Applied Economics
Year: 2011
Volume: 43
Issue: 24
Pages: 3289-3298

Authors (4)

Tsangyao Chang (Feng Chia University) Ding Li (not in RePEc) Yang-Cheng Lu (not in RePEc) Chia-Hao Lee (not in RePEc)

Score contribution per author:

0.252 = (α=2.02 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this article, we re-investigate the validity of Purchasing Power Parity (PPP) for a sample of 10 East-Asia countries over the period of January 1987 to June 2005, using a recently developed econometric technique of the panel stationary test with multiple structural breaks, proposed by Carrion-i-Silvestre et al. (2005). This test considers multiple structural breaks positioned at different unknown dates and a different number of breaks for each individual. Empirical evidence shows that the PPP holds true for half of 10 East-Asia countries during the research period. Our results have important policy implications for these 10 East-Asia countries under study.

Technical Details

RePEc Handle
repec:taf:applec:v:43:y:2011:i:24:p:3289-3298
Journal Field
General
Author Count
4
Added to Database
2026-01-25