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Volume 16, Issue 2
1 January 1996
Studies in Economics and Finance Cover Image for Volume 16, Issue 2
Review Article| January 01 1996

PURCHASING POWER PARITY DOCTRINE: AN UNRESTRICTED COINTEGRATION TEST Available to Purchase

Swarna D. Dutt;
Swarna D. Dutt
Assistant Professor, Department of Economics, School of Business, West Georgia College, Carrollton, GA 30118.
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Dipak Ghosh
Dipak Ghosh
Visiting Assistant Professor, Department of Economics, Tulane University, New Orleans, LA 70118.
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Author & Article Information
Publisher: Emerald Publishing
Online ISSN: 1755-6791
Print ISSN: 1086-7376
© MCB UP Limited
1996
Studies in Economics and Finance (1996) 16 (2): 22–45.
https://doi.org/10.1108/eb028720

The purchasing power parity hypothesis is investigated within a highly economically integrated set of nations, namely the European Monetary System. We use the Phillips‐Hansen Fully Modified Ordinary Least Squares procedure, which for the first time allows for an unrestricted cointegration test of the PPP doctrine. We sequentially test for the weak and strong form of PPP.

© MCB UP Limited
1996
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