Resumen de Purchasing Power Parity versus the EU in the Mediterranean countries

María Amparo Camarero Olivas , Juan Carlos Cuestas, Javier Ordóñez Monfort

• This study applies a group of unit root and stationarity tests to study the hypothesis of Purchasing Power Parity in ten Mediterranean countries. The real effective exchange rate with the European Union turns out to be stationary for five of the countries analysed, once the presence of structural changes and nonlinearities are accounted for.