| Author: | Cheung, Y. Lai, K. |
| Title: | On cross-country differences in the persistence of real exchange rates |
| Journal: | Journal of International Economics
2000 : APR, VOL. 50:2, p. 375-398 |
| Index terms: | EXCHANGE RATES ECONOMICS INTERNATIONAL |
| Language: | eng |
| Abstract: | Previous findings of long-run purchasing power parity come mainly from data for industrial countries, raising the issue of whether the results suffer sample-selection bias and exaggerate the general relevance of parity reversion. This study uncovers substantial cross-country heterogeneity in the persistence of deviations from parity. The results show that it is more likely, rather than less likely, to find parity reversion for developing countries than industrial countries. |
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