Testing for nominal convergence in the Central American area: evidence from panel data unit-root tests - Université de La Réunion
Article Dans Une Revue Applied Economics Letters Année : 2009

Testing for nominal convergence in the Central American area: evidence from panel data unit-root tests

Résumé

Inflation convergence between the Central American Area and the United States is investigated using both recent homogeneous and heterogeneous panel data unit-root methods. Strong rejections of unit-root hypothesis are found, and therefore evidence of Purchasing Power Parity, in the Central American countries for the 1981:1–2005:4 period. Then by considering the nominal convergence criterion, the dollarization system seems to be suited to this region.

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Dates et versions

hal-01243476 , version 1 (15-12-2015)

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Jean-François Hoarau, Stéphane Blancard, Philippe Jean-Pierre. Testing for nominal convergence in the Central American area: evidence from panel data unit-root tests. Applied Economics Letters, 2009, 16 (11), pp.1171--1174. ⟨10.1080/13504850701367148⟩. ⟨hal-01243476⟩
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