Evidence on the purchasing power parity in a panel of cities
Authors: Carrion-I-Silvestre, Josep LluÍs; Barrio, Tomás Del; López-Bazo, Enrique
Source: Applied Economics, Volume 36, Number 9, May 20, 2004 , pp. 961-966(6)
Abstract: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.
Document Type: Research Article
Affiliations: 'Anàlisi Quantitativa Regional' Research Group Departament d'Econometria Estadística i Economia Espanyola Universitat de Barcelona Spain
Publication date: May 1, 2004