Hrvatsko društvo ekonomista

ARTICLES ::: AUTHORS ::: ARTICLES SEARCH

June 2020. ::: Vol.71 No. 03

    Mile Bošnjak
    Vlatka Bilas
    Ivan Novak

RE-EXAMINING PURCHASING POWER PARITY IN CROATIA: QUANTILE AUTOREGRESSION APPROACH https://doi.org/10.32910/ep.71.3.1 Izvorni znanstveni članak 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. Purchasing power parity; Real effective exchange rate; Quantile autoregression; Croatia Puni tekst: hrvatski, pdf (166 KB)

RE-EXAMINING PURCHASING POWER PARITY IN CROATIA: QUANTILE AUTOREGRESSION APPROACH

https://doi.org/10.32910/ep.71.3.1

Izvorni znanstveni članak

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.

Purchasing power parity; Real effective exchange rate; Quantile autoregression; Croatia

Puni tekst: hrvatski, pdf (166 KB)