Purchasing Power Parity during currency crises: A panel unit root test under structural breaks

Article Abstract:

The stationarity of real exchange rates is investigated using a panel of Asian and South and Latin American countries and applying a new panel unit root test that is robust to structural breaks because of currency crises. The results revealed that Asian countries experienced a flexible exchange rate, where as the South and Latin American countries for which the exchange rate was pegged to the U.S. dollar for a long time, the purchase power parity (PPP) broke down.

United States, Latin America, Dollar (United States), Purchasing power

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Investment and uncertainty in the G7

Article Abstract:

The impact of comprehensive range of potential sources of uncertainty on aggregate business investment across the G7 using Pooled Mean Group Estimation (PMGE) and GARCH methods to model uncertainty are assessed. A significant negative long-run effect from exchange rate volatility is found for the G7 and in poolable subgroups including all four larger EU countries.

Europe, Government expenditures, Models, Economic policy, European Union

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The impact of short-and long-run exchange rate uncertainty on investment: a panel study of industrial countries

Article Abstract:

A study is conducted on investment behavior in industrialized countries (G7), and its dependency on exchange rate uncertainty.

Industrialized Countries, Analysis, Usage, Investments, Learning models (Stochastic processes), Industrial nations, Investment management, Stochastic models

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