Home bias and deviations from purchasing power parity
(EN)
Μυλωνίδης, Νικόλαος
(EL)
Μυλωνίδης, Νικόλαος
(EL)
Πανεπιστήμιο Ιωαννίνων. Σχολή Οικονομικών και Κοινωνικών Επιστημών. Τμήμα Οικονομικών Επιστημών
(EL)
Empirical analysis has produced mixed results in testing for PPP. This note presents a simple model linking home bias towards home-produced tradable goods with deviations from absolute PPP.We show that this bias constitutes a significant determinant of PPP deviations.
(EN)
