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National Journals

Journal Detail

LONG-RUN PURCHASING POWER PARITY (DOKTRIN PARITAS DAYA BELI) DENGAN ERROR CORRECTION MODEL

ID : 11-01-02, ISSN : 0854-4190 , PUB: Vol 11 , April, 2004

Abstract

This research investigated the short and long run validity and reliability of purchasing power parity (PPP). Error Correction Model (ECM) is employed to examine pooled data of Indonesia-US exchange rate. Wholesale price indices and consumer price indices are gathered from IFS. The findings suggest that either short or long run Purchasing Power Parity (? 0 = 0; ? 1 = + 1; and ? 2 = -1) do not hold.

 

Keyword: time series analysis, cointegration, error correction model (ECM), purchasing power parity

Author: Nunung Nurastuti Utami