Purchasing power parity-evidence from a new panel test

This paper uses a recently suggested test for unit roots in panels of time series data (Maddala and Wu, Oxford Bulletin of Economics and Statistics, 61, 631-52,1999) to consider the Purchasing Power Parity hypothesis. The major innovation of this test is that it allows both the testing of unit root...

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Main Authors: MacDonald, Garry, Allen, D., Cruickshank, S
Format: Journal Article
Published: Taylor & Francis 2002
Online Access:http://hdl.handle.net/20.500.11937/24016
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author MacDonald, Garry
Allen, D.
Cruickshank, S
author_facet MacDonald, Garry
Allen, D.
Cruickshank, S
author_sort MacDonald, Garry
building Curtin Institutional Repository
collection Online Access
description This paper uses a recently suggested test for unit roots in panels of time series data (Maddala and Wu, Oxford Bulletin of Economics and Statistics, 61, 631-52,1999) to consider the Purchasing Power Parity hypothesis. The major innovation of this test is that it allows both the testing of unit root null, using the ADF test, and the stationarity null, using the KPSS test. It is found that the results are inconsistent, suggesting that either alternative hypotheses to a unit root may need to be considered or that panel based testing in this particular context may be of limited value.
first_indexed 2025-11-14T07:50:43Z
format Journal Article
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institution Curtin University Malaysia
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last_indexed 2025-11-14T07:50:43Z
publishDate 2002
publisher Taylor & Francis
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spelling curtin-20.500.11937-240162017-09-13T15:58:58Z Purchasing power parity-evidence from a new panel test MacDonald, Garry Allen, D. Cruickshank, S This paper uses a recently suggested test for unit roots in panels of time series data (Maddala and Wu, Oxford Bulletin of Economics and Statistics, 61, 631-52,1999) to consider the Purchasing Power Parity hypothesis. The major innovation of this test is that it allows both the testing of unit root null, using the ADF test, and the stationarity null, using the KPSS test. It is found that the results are inconsistent, suggesting that either alternative hypotheses to a unit root may need to be considered or that panel based testing in this particular context may be of limited value. 2002 Journal Article http://hdl.handle.net/20.500.11937/24016 10.1080/00036840110103760 Taylor & Francis restricted
spellingShingle MacDonald, Garry
Allen, D.
Cruickshank, S
Purchasing power parity-evidence from a new panel test
title Purchasing power parity-evidence from a new panel test
title_full Purchasing power parity-evidence from a new panel test
title_fullStr Purchasing power parity-evidence from a new panel test
title_full_unstemmed Purchasing power parity-evidence from a new panel test
title_short Purchasing power parity-evidence from a new panel test
title_sort purchasing power parity-evidence from a new panel test
url http://hdl.handle.net/20.500.11937/24016