The purchasing power parity hypothesis for a high inflation country: a re-examination of the case of Turkey
Küçük Resim Yok
Tarih
2003
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Routledge Taylor & Francis Ltd
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The long-run purchasing power parity (PPP) hypothesis is re-examined for Turkey and strong evidence on long-run PPP is provided by using standard multivariate cointegration techniques. It is argued that the refutation of PPP by Telatar and Kazdagli does not necessarily imply the failure of taking the non-linearity in real exchange rate adjustment into account, as proposed by Sarno, but it may be due to the use of univariate framework for testing PPP chosen by Telatar and Kazdagli. By using persistence profiles, half-life deviations from PPP are estimated as low as one and a half years. Since these estimates are substantially lower than those previously obtained in the literature, the analysis suggests that high inflation environment does not constitute a case for the PPP puzzle.
Açıklama
Anahtar Kelimeler
Likelihood Ratio Tests, Exchange-Rate, Cointegration, Models, Behavior
Kaynak
Applied Economics Letters
WoS Q Değeri
Q4
Scopus Q Değeri
Q2
Cilt
10
Sayı
3
