Purchasing power parity across states and goods within Australia | Macquarie University ResearchOnline

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Title: Purchasing power parity across states and goods within Australia
Related: Economic record, Vol. 80, Issue 250, p.314-329
DOI: 10.1111/j.1475-4932.2004.00191.x
Publisher: Wiley-Blackwell Publishing
Date: 2004
FoR/RFCD Code(s): 140200 Applied Economics
Author/Creator: Chaudhuri, Kausik
Author/Creator: Sheen, Jeffrey
Description: Panel unit root tests show that intranational purchasing power parity cannot be rejected across major Australian cities from 1972:3 to 1999:1. The persistence of deviations in response to shocks is low, as measured by the estimated exact half-life of between five and ten quarters. This is much lower than results for similar tests done on US cities, and for international purchasing power parity tests. The food CPI is largely responsible for the fast convergent results for city CPIs. Intranational purchasing power parity was rejected for the floating exchange rate period from 1984 to 1991 when inflation was high and not specifically targeted by the central bank.
Description: 16 page(s)
Subject Keyword: 140200 Applied Economics
Subject Keyword: open economy macroeconomics
Subject Keyword: price level
Subject Keyword: inflation
Subject Keyword: deflation
Resource Type: journal article
Organisation: Macquarie University. Dept. of Economics

Macquarie University ResearchOnline