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Testing for symmetry and proportionality in a European panel

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  • Jerry Coakley
  • Stuart Snaith

Abstract

Symmetry and proportionality is tested for in 15 European economies 1973:04-1998:12 in a panel regression framework that allows for permanent shocks. Support is found for both symmetry and proportionality and thus for general relative PPP in the US dollar but not the German mark panel.

Suggested Citation

  • Jerry Coakley & Stuart Snaith, 2006. "Testing for symmetry and proportionality in a European panel," Applied Financial Economics, Taylor & Francis Journals, vol. 16(1-2), pages 63-71.
    • Handle: RePEc:taf:apfiec:v:16:y:2006:i:1-2:p:63-71
    DOI: 10.1080/09603100500389812
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    References listed on IDEAS

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    Cited by:

    1. Hsing, Yu, 2009. "Analysis of the Behavior of the New Zealand Dollar Exchange Rate: Comparison of Four Major Models," Review of Applied Economics, Lincoln University, Department of Financial and Business Systems, vol. 5(01-2), pages 1-10, March.
    2. Abdullah Noman, 2008. "Testing for PPP in the mean-group panel rgression framework: further evidence," Economics Bulletin, AccessEcon, vol. 6(20), pages 1-12.
    3. Yu Hsing, 2010. "Analysis of movements in the AUD/USD exchange rate: comparison of four major models," Applied Economics Letters, Taylor & Francis Journals, vol. 17(6), pages 575-580.
    4. repec:ebl:ecbull:v:6:y:2008:i:20:p:1-12 is not listed on IDEAS
    5. Stewart, Chris, 2023. "Re-evaluating whether absolute or relative purchasing power parity is being tested when using price indices," Economics Discussion Papers 2023-1, School of Economics, Kingston University London.
    6. Hsing, Y, 2009. "Functional Forms and PPP: The Case of Canada, the EU, Japan, and the U.K," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).
    7. Hwa-Taek Lee & Gawon Yoon, 2013. "Does purchasing power parity hold sometimes? Regime switching in real exchange rates," Applied Economics, Taylor & Francis Journals, vol. 45(16), pages 2279-2294, June.
    8. Yu Hsing, 2009. "Functional forms and PPP: new evidence for eight Asian countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(1), pages 95-98.

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