Search
Now showing items 1-2 of 2
Persistence in Law-of-One-Price Deviations: Evidence from Micro-data
(Vanderbilt University, 2002)
We study the dynamics of good-by-good real exchange rates using a micro-panel of 270 goods prices drawn from major cities in 71 countries and 245 goods prices drawn from 13 major U.S. cities. We find half-lives of deviations ...
A Nonparametric Measure of Convergence Toward Purchasing Power Parity
(Vanderbilt University, 2002)
It has been claimed that the deviations from purchasing power parity are highly persistent and have quite long half-lives under the assumption of a linear adjustment of real exchange rates. However, inspired by trade cost ...