Testing the PPP hypothesis for G-7 countries


AKDİ Y., Ozdemir Z. A. , Olgun H.

APPLIED ECONOMICS LETTERS, vol.16, no.1, pp.99-101, 2009 (Journal Indexed in SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 16 Issue: 1
  • Publication Date: 2009
  • Doi Number: 10.1080/13504850601018551
  • Title of Journal : APPLIED ECONOMICS LETTERS
  • Page Numbers: pp.99-101

Abstract

This article applies the model free, seasonality robust periodogram test, and the conventional augmented Dickey-Fuller (ADF) unit root test to the real exchange rates (RER) of the G-7 countries. The empirical results show that the periodogram test rejects the null of unit root for a larger number of countries compared to the ADF test.