تست برای برابری قدرت خرید مطلق

Purchasing power parity (PPP) is an equilibrium condition equating the nominal exchange rate between two countries with the relative price of an identical bundle of goods in each country. Previous time-series researchers use price indices to study PPP, so they test relative PPP. We use new data that measures price levels, so we test absolute PPP. Price levels provide a test of absolute PPP because, unlike price indices, price levels do not contain a base period in which the nominal exchange rate equals the price ratio by construction. We find support for absolute PPP.