Ekonomski pregled, Vol. 71 No. 3, 2020.
Izvorni znanstveni članak
https://doi.org/10.32910/ep.71.3.1
RE-EXAMINING PURCHASING POWER PARITY IN CROATIA: QUANTILE AUTOREGRESSION APPROACH
Mile Bošnjak
Vlatka Bilas
Ivan Novak
Sažetak
The paper aims to re-examine validity of purchasing power parity (PPP) theory in Croatia. Data sample consists of monthly data on real effective exchange rate of Croatian kuna. The paper employed several unit root tests with different specification and quantile autoregression approach. The results from unit root tests unambiguously indicate existence of unit root and persistence of real effective exchange rate of Croatian kuna while quantile autoregression model indicate asymmetries in endogenous shocks. Eventually, the research results do not support validity of PPP theory in case of Croatia.
Ključne riječi
Purchasing power parity; Real effective exchange rate; Quantile autoregression; Croatia
Hrčak ID:
239315
URI
Datum izdavanja:
18.6.2020.
Posjeta: 1.744 *