Aggregate price indexes, cointegration, and tests of the purchasing power parity hypothesis

C-Tier
Journal: Economics Letters
Year: 1991
Volume: 36
Issue: 3
Pages: 305-309

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

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

Abstract

In this paper I show that cointegration tests of PPP using aggregate price indexes are not always robust to changes in relative prices. I offer a method of gauging the importance of these effects and find them to be unimportant in recent rejections of PPP.

Technical Details

RePEc Handle
repec:eee:ecolet:v:36:y:1991:i:3:p:305-309
Journal Field
General
Author Count
1
Added to Database
2026-01-25