Resumen de Exchange rate misalignment: a new test of long-run PPP based on cross-country data

Pan A. Yotopoulos, Yasuyuki Sawada

• A new empirical procedure is formulated and implemented to test long-run PPP by using cross-country data. It is found that out of a total of 153 countries, 132 and 105 countries have achieved PPP within 20 years and ten years, respectively.