A note on purchasing power parity and the choice of price index

Detalhes bibliográficos
Autor(a) principal: Terra,Cristina
Data de Publicação: 2008
Outros Autores: Vahia,Ana Lucia
Tipo de documento: Artigo
Idioma: eng
Título da fonte: Revista Brasileira de Economia (Online)
Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000100005
Resumo: The PPP argument states that the currencies purchasing power should be the same across countries for the same basket of tradable goods. We run a horse race among six different price indices to see which one yields higher PPP evidence, and, therefore, better fits this criterion. Using export unit values, WPIs, value added deflators, unit labor costs, normalized unit labor costs and CPIs for 16 countries from 1975 to 2002, unit root tests show that WPI was the index for which PPP evidence was found for the larger number of countries. No evidence of PPP was found for the ratio CPI/WPI.
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spelling A note on purchasing power parity and the choice of price indexReal exchange rateprice indicespurchasing power parityThe PPP argument states that the currencies purchasing power should be the same across countries for the same basket of tradable goods. We run a horse race among six different price indices to see which one yields higher PPP evidence, and, therefore, better fits this criterion. Using export unit values, WPIs, value added deflators, unit labor costs, normalized unit labor costs and CPIs for 16 countries from 1975 to 2002, unit root tests show that WPI was the index for which PPP evidence was found for the larger number of countries. No evidence of PPP was found for the ratio CPI/WPI.Fundação Getúlio Vargas2008-03-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersiontext/htmlhttp://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000100005Revista Brasileira de Economia v.62 n.1 2008reponame:Revista Brasileira de Economia (Online)instname:Fundação Getulio Vargas (FGV)instacron:FGV10.1590/S0034-71402008000100005info:eu-repo/semantics/openAccessTerra,CristinaVahia,Ana Luciaeng2008-09-18T00:00:00Zoai:scielo:S0034-71402008000100005Revistahttp://bibliotecadigital.fgv.br/ojs/index.php/rbe/issue/archivehttps://old.scielo.br/oai/scielo-oai.php||rbe@fgv.br1806-91340034-7140opendoar:2008-09-18T00:00Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)false
dc.title.none.fl_str_mv A note on purchasing power parity and the choice of price index
title A note on purchasing power parity and the choice of price index
spellingShingle A note on purchasing power parity and the choice of price index
Terra,Cristina
Real exchange rate
price indices
purchasing power parity
title_short A note on purchasing power parity and the choice of price index
title_full A note on purchasing power parity and the choice of price index
title_fullStr A note on purchasing power parity and the choice of price index
title_full_unstemmed A note on purchasing power parity and the choice of price index
title_sort A note on purchasing power parity and the choice of price index
author Terra,Cristina
author_facet Terra,Cristina
Vahia,Ana Lucia
author_role author
author2 Vahia,Ana Lucia
author2_role author
dc.contributor.author.fl_str_mv Terra,Cristina
Vahia,Ana Lucia
dc.subject.por.fl_str_mv Real exchange rate
price indices
purchasing power parity
topic Real exchange rate
price indices
purchasing power parity
description The PPP argument states that the currencies purchasing power should be the same across countries for the same basket of tradable goods. We run a horse race among six different price indices to see which one yields higher PPP evidence, and, therefore, better fits this criterion. Using export unit values, WPIs, value added deflators, unit labor costs, normalized unit labor costs and CPIs for 16 countries from 1975 to 2002, unit root tests show that WPI was the index for which PPP evidence was found for the larger number of countries. No evidence of PPP was found for the ratio CPI/WPI.
publishDate 2008
dc.date.none.fl_str_mv 2008-03-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000100005
url http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402008000100005
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv 10.1590/S0034-71402008000100005
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv text/html
dc.publisher.none.fl_str_mv Fundação Getúlio Vargas
publisher.none.fl_str_mv Fundação Getúlio Vargas
dc.source.none.fl_str_mv Revista Brasileira de Economia v.62 n.1 2008
reponame:Revista Brasileira de Economia (Online)
instname:Fundação Getulio Vargas (FGV)
instacron:FGV
instname_str Fundação Getulio Vargas (FGV)
instacron_str FGV
institution FGV
reponame_str Revista Brasileira de Economia (Online)
collection Revista Brasileira de Economia (Online)
repository.name.fl_str_mv Revista Brasileira de Economia (Online) - Fundação Getulio Vargas (FGV)
repository.mail.fl_str_mv ||rbe@fgv.br
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