Purchasing power parity and the theory of general relativity: the first tests
نویسندگان
چکیده
We implement novel tests of general relative purchasing power parity (PPP), defined as a long-run unit elasticity of the nominal exchange rate with respect to relative national prices, allowing for potentially permanent real exchange rate shocks. The finite-sample properties of the estimators used are analyzed through Monte Carlo analysis, allowing for country heterogeneity, cross-sectional dependence and non-stationary disturbances. Application to panel data sets of industrialized and developing economies reveals that inflation differentials are on average reflected one-for-one in long-run nominal exchange rate depreciationdi.e. that general relative PPP holds. 2004 Published by Elsevier Ltd. JEL classification: C32; F31
منابع مشابه
Purchasing Power Parity Hypothesis In OIC Countries: Evidence From Panel Unit Root Tests With Heterogeneous Structural Breaks
متن کامل
Bulk Viscous Bianchi Type VI0 Cosmological Model in the Self-creation Theory of Gravitation and in the General Theory of Relativity
In the second self-creation theory of gravitation and in the general theory of relativity, Bianchi type VI0 cosmological model in the presence of viscous fluid is studied. An exact solution of the field equations is given by considering the cosmological model yields a constant decelerations parameter q=constant and the coefficients of the metric are taken as A(t)=[c1t+c<su...
متن کاملEvaluation of Iran\'s Health Financing System
Background and Aim: The health financing system is "the process of collecting, pooling and managing financial resources and purchasing healthcare services”. Iran's health financing system is facing challenges. The aim of this study was to evaluate the Iranian health financing system. Materials and Methods: This descriptive study retrospectively evaluated the health financing system of...
متن کاملEinstein structures on four-dimensional nutral Lie groups
When Einstein was thinking about the theory of general relativity based on the elimination of especial relativity constraints (especially the geometric relationship of space and time), he understood the first limitation of especial relativity is ignoring changes over time. Because in especial relativity, only the curvature of the space was considered. Therefore, tensor calculations should be to...
متن کامل