WP 14/2004: An empirical examination of the purchasing-power-parity hypothesis for Denmark 1875-2002
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| Author(s): | Abildgren, Kim |
| Subject: | Danish economy; Monetary conditions; Inflation, wages and prices; Financial prices |
| Type: | Working Papers |
| Year of publication: | 2004 |
| Date of publication: | 05/04/2004 |
| Related journal article: | Abildgren, K., Real Effective Exchange Rates and Purchasing-Power-parity Convergence: Empirical Evidence for Denmark, 1875-2002, Scandinavian Economic History Review, Vol. 53(3), 2005, pp. 58-70. |
The paper reviews the empirical evidence regarding long-run relative purchasing-powerparity (PPP) convergence in the case of Denmark using simple unit-root tests and cointegration tests on new historical time-series indices for the effective krone rate since
1875. The results based on a real effective krone rate index with wholesale prices as deflators support a hypothesis of long-run relative PPP convergence.
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