The DOI matches its Crossref record.
Deviations from Purchasing Power Parity in the Long Run
Abstract
This paper demonstrates that deviations from purchasing power parity reveal a remarkable and possibly startling consistency with martingale behavior during both fixed and flexible rate periods, for a wide variety of countries, and in both monthly and annual data. Since this pattern appears to be much more general than one would expect on the basis of models founded on international commodity arbitrage, the paper proposes an alternative explanation which instead relies on financial arbitrage in bonds as the underlying mechanism.
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Citations
Cited by
A panel project on purchasing power parity: Mean reversion within and between countries
Frankel, J. A., & Rose, A. K. (1996) · Journal of International Economics · doi:10.1016/0022-1996(95)01396-2 · Cited by 678
Chapter 17 Spatial price analysis
Fackler, P. L., & Goodwin, B. K. (2001) · Handbook of Agricultural Economics · doi:10.1016/s1574-0072(01)10025-3 · Cited by 113
Metadata
- Authors
- ADLER, M., & LEHMANN, B.
- Venue
- The Journal of Finance
- Publisher
- Wiley
- Published
- 1983-12
- Volume
- 38
- Issue
- 5
- Pages
- 1471-1487
- ISSN
- 0022-1082 (ISSN-L)
- 1540-6261
- OpenAlex
- W2028500418
- Cited by
- 495
- References
- 0
- FWCI
- 21.05
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: Deviations from Purchasing Power Parity in the Long Run. https://app.cochat.ai/papers/10.1111/j.1540-6261.1983.tb03835.x
- The paper
- ADLER, M., & LEHMANN, B. (1983). Deviations from Purchasing Power Parity in the Long Run. The Journal of Finance. https://doi.org/10.1111/j.1540-6261.1983.tb03835.x
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
