"Aggregation bias" does explain the PPP puzzle / Jean Imbs ... [et al.].

Other author Imbs, Jean.
Other author National Bureau of Economic Research.
Format Electronic
Publication InfoCambridge, MA : National Bureau of Economic Research,
Supplemental ContentFull text available from NBER Working Papers
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SeriesNBER working paper series ; working paper 11607
Working paper series (National Bureau of Economic Research : Online) ; working paper no. 11607. UNAUTHORIZED
Summary "This article summarizes our views on the role of an "aggregation bias" in explaining the PPP Puzzle, in response to the several papers recently written in reaction to our initial contribution. We discuss in particular the criticisms of Imbs, Mumtaz, Ravn and Rey (2002) presented in Chen and Engel (2005). We show that their contentions are based on: (i) analytical counter-examples which are not empirically relevant; (ii) simulation results minimizing the extent of "aggregation bias"; (iii) unfounded claims on the impact of measurement errors on our results; and (iv) problematic implementation of small-sample bias corrections. We conclude, as in our original paper, that "aggregation bias" goes a long way towards explaining the PPP puzzle"--National Bureau of Economic Research web site.
General noteTitle from PDF file as viewed on 9/15/2005.
Bibliography noteIncludes bibliographical references.
Access restrictionAvailable only to authorized users.
Other formsAlso available in print.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
LCCN 2005618916

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