Naslov
Structural breaks and Purchasing Power Parity in the CEE and Post-War former Yugoslav States

Autori
Sonora, J. Robert ; Tica, Josip

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, neobjavljeni rad, ostalo

Skup
83th Annual Conference, Western Economic Association

Mjesto i datum
Honolulu (HI), Sjedinjene Američke Države, 29.06.2008. - 03.07.2008

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Purchasing power parity; Economic Integration; panel unit root tests

Sažetak
In this paper we investigate purchasing power parity in the CEE and post-War former-Yugoslav states during EU integration process 1994-2006. This work stems from longer term tests of real exchange rate convergence in the former Yugoslavia. This period is of interest on two fronts: First, it investigates real exchange dynamics in the aftermath of war financed in part through seignorage ; and second, we investigate the level of economic integration with the European Union following the break up of the former Yugoslavia. Given the short run nature of the available data we use panel unit root tests with and without structural breaks. Preliminary results suggest that real exchange rates between the former Yugoslav states and Germany are stationary when breaks are accounted for. Given the size of nominal shocks in the region, particularly in the early 1990s, preliminary results indicate that convergence to the long run equilibrium is relatively quick.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA