There has been a lot of research work on the validity (or rather,
invalidity) of the PPP.
A good starting point is Solnik's book on International Finance.
----- Original Message -----
From: "Brian Muriuki" <[email protected]>
To: <[email protected]>
Sent: Tuesday, May 25, 2004 2:43 PM
Subject: st: STATA Help!! How to test for PPP!!
> Greetings!!
> I am a complete STATA dummy and need help in finding
> out the procedure for testing for both absolute and
> relative Purchasing Power parity using STATA 8. Does
> anyone out there have a guide or procedural walk
> through that can take me step by step through how to
> test for PPP? Your help would be greatly appreciated!!
> i.e.....what time series data to use and how to
> conduct the tests!! Thanks!!!
>
>
>
>
>
>
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