PURCHASING POWER PARITY AND COINTEGRATION: EVIDENCE FROM LATVIA AND SLOVAKIA

• Authors: Chocholatá Michaela
• Languages of publication: EN

Abstracts

EN

This paper deals with the analysis of the purchasing power parity between Latvia and the euro area and between Slovakia and the euro area using the Engle-Granger and Johansen co-integration techniques. Latvia and Slovakia became members of the European Union in May 2004 and have been already the members of the Exchange Rate Mechanism II (ERM II) preparing for the euro adoption. The whole analysis was done on monthly data covering the period January 1999 - May 2008. Both the Engle-Granger and the Johansen method did not confirmed the purchasing power parity (PPP) validity in both analysed cases.

Keywords

EN

COINTEGRATION; ENGLE-GRANGER METHOD; EXCHANGE RATES; JOHANSEN METHOD; LATVIA; PURCHASING POWER PARITY; SLOVAKIA

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2009
• Volume: 57
• Issue: 4
• Pages: 344-358
• Document type: ARTICLE

Contributors

author

Chocholatá Michaela

• Ekonomická univerzita v Bratislave, Fakulta hospodárskej informatiky, Dolnozemská cesta 1/b, 852 35 Bratislava, Slovak Republic

• Michaela Chocholata, Ekonomicka univerzita v Bratislave, Fakulta hospodarskej informatiky, Katedra operacneho vyskumu a ekonometrie, Dolnozemska cesta 1/b, 852 35 Bratislava 5, Slovak Republic

Identifiers

CEJSH db identifier

09SKAAAA06643