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Original Articles

Testing the PPP hypothesis for G-7 countries

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Pages 99-101 | Published online: 16 Jan 2009
 

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.

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