An Alternative Version of Purchasing Power Parity

A vast literature on Purchasing Power Parity (PPP) has evolved and PPP has become the most popular concept in international finance. PPP is applied with various price indices such as consumer price index, wholesale price index, etc. In this article, we introduce a revised version of PPP equation for...

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Bibliographic Details
Published in:	International journal of finance and economics Vol. 25; no. 4; pp. 511 - 517
Main Authors:	Afat, Dinçer, Frömmel, Michael
Format:	Journal Article
Language:	English
Published:	Chichester Wiley Periodicals Inc 01-10-2020
Subjects:	cross‐sectional dependence exchange rate financial markets International finance Longitudinal studies panel data Purchasing power parity Wholesale Price Index-US
Online Access:	Get full text
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Summary:	A vast literature on Purchasing Power Parity (PPP) has evolved and PPP has become the most popular concept in international finance. PPP is applied with various price indices such as consumer price index, wholesale price index, etc. In this article, we introduce a revised version of PPP equation for financial products, which is strongly supported by our panel data analysis.
ISSN:	1076-9307 1099-1158
DOI:	10.1002/ijfe.1767