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Purchasing Power Parity - Term Paper Example

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We collected monthly consumer price index (CPI) time series data spanning from 1st January 1955 to 1st December 2013 from the Federal Reserve Economic Data. We however manipulated the data to have them in annual form and computed Purchasing Power Parity (PPP) using 2002 as the…
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Purchasing Power Parity

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Purchasing Power Parity

Download file to see previous pages... From the table we can observe that the mean log(Real exchange rate) was 0.5141 with a minimum of 0.33299 and a maximum of 0.78660. The standard deviation is 0.12202. The skewness=0.62868>0, implying that the data has a right skewed distribution that is, most values are concentrated on left of the mean, with extreme values to the right. Also, kurtosis is given as -0.84400 ...Download file to see next pagesRead More
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