THE PURCHASING POWER PARITY HYPOTHESIS TESTED -ONCE AGAIN-. NEW EMPIRICAL EVIDENCE FOR 28 OECD COUNTRIES

Purchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks

purchasing power parity hypothesis in oic countries: evidence from panel unit root tests with heterogeneous structural breaks

Leviathan and Legislative Monopoly Power: Empirical Evidence from OECD Countries

In this paper we test the Leviathan hypothesis, focusing on the joint impact of fiscal decentralization and legislative monopoly power in the growth of the public sector. Two proxies of legislative monopoly power are considered: the control of all relevant houses by the executive party and the margin of majority. Using a dynamic panel-based error correction model on OECD member countries, we fi...

Purchasing Power Parity: Evidence from a New Test

Most economists intuitively consider purchasing power parity (PPP) to be true. Nevertheless, quite surprisingly, the empirical literature is not very supportive for PPP. In this paper, however, we …nd evidence in favor of PPP using a new test. The test is embedded in a Markov regime-switching model for the exchange rate, because earlier papers have shown that this model describes the data bette...

Some Evidence of Purchasing Power Parity

Empirical support for purchasing power parity is mixed with results dependent on the time frame and countries under examination, the methodology employed, attempts to control for aggregation bias in the data, and whether adjustments are made to account for productivity differences across nations. As a central component of macroeconomic thinking, purchasing power parity is battered and battle-wo...