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Title: |
Purchasing Power Parity by Sectors from
Selected European Countries: Cointegration and Structural Breaks |
| Author: |
Zumaquero,
Amalia Morales |
| Author
Affiliation: |
U Malaga |
| Source: |
International Economic Journal, Winter 2002, v. 16, no. 4, pp. 107-119 |
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Publication Date: |
Winter 2002 |
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Abstract: |
In this paper
we study the long-run Purchasing Power Parity (PPP) hypothesis by traded
and non-traded sectors using cointegration techniques in the presence of
structural breaks, for a set of European countries during the period
1975:1-1995:12. This approach is complementary to many existing
approaches to investigate the PPP hypothesis. We find evidence in favor
of long-run PPP hypothesis when commodity prices are used in the
presence of structural breaks. This result lends support to the
integration process in the European Union. |
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