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dc.contributor.authordal Bianco, Marcos Joséen_US
dc.date.accessioned2008-10-27en_US
dc.date.accessioned2012-11-21T13:17:35Z-
dc.date.available2012-11-21T13:17:35Z-
dc.date.issued2008en_US
dc.identifier.citationEstudios de Economía 0718-5286 35 2008 1 33-64en_US
dc.identifier.urihttp://hdl.handle.net/10419/66700-
dc.description.abstractThis paper tests the Purchasing Power Parity Theory of Exchange Rates dealing with Argentinean data for the period 1900-2006. This is equivalent to testing if the Real Exchange Rate is a stationary variable or if its components (the nominal exchange rate and the relative prices) are cointegrated. Since most works study developed countries or developing countries but with short span data, this paper aims to fill a gap in the wide PPP literature by studding a developing country with a long-run approach. This country is particularly interesting since during 20th century Argentine economic performance tells a story of decline unparalleled in modern times” (Taylor 1992). The downfall of this once developed country has probably affected the behavior of its RER and the validity of PPP. To check this, we use a wide set of econometric techniques and found that the PPP theory is not verified in Argentina, since its RER appears as a non-stationary variable, and there is no evidence of cointegration between the nominal exchange rate and the relative prices. In particular, the Argentinean RER appears to be trend-stationary under structural breaks with a continuous real depreciation of the Argentinean currency, especially in the first half of XX century, which is consistent with theories that relate the secular impoverishment of a country with the depreciation of its RER, as the Balassa-Samuelson effect.en_US
dc.language.isoengen_US
dc.publisherUniversidad de Chile, Departamento de Economía Santiago de Chileen_US
dc.subject.jelC12en_US
dc.subject.jelC22en_US
dc.subject.jelC29en_US
dc.subject.jelF31en_US
dc.subject.jelF41en_US
dc.subject.ddc330en_US
dc.subject.keywordpurchasing power parityen_US
dc.subject.keywordreal exchange rateen_US
dc.subject.keywordstationarityen_US
dc.subject.keywordunit root testsen_US
dc.subject.keywordcointegrationen_US
dc.subject.keywordstructural breaks.en_US
dc.subject.stwKaufkraftparitäten_US
dc.subject.stwStochastischer Prozessen_US
dc.subject.stwUnit Root Testen_US
dc.subject.stwKointegrationen_US
dc.subject.stwStrukturbruchen_US
dc.subject.stwArgentinienen_US
dc.titleArgentinean real exchange rate 1900 - 2006: Testing purchasing power parity theoryen_US
dc.typeArticleen_US
dc.identifier.ppn576842087en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:Estudios de Economia, Department of Economics, University of Chile

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