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@article{ Pfaffermayr2009,
 title = {The Law of One Price: Conditional Convergence Evidence from Disaggregated Data},
 author = {Pfaffermayr, Michael},
 journal = {Applied Economics},
 number = {26},
 pages = {3345-3357},
 volume = {41},
 year = {2009},
 doi = {https://doi.org/10.1080/00036840701426584},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-240761},
 abstract = {This paper contributes to the literature on the Law of One Price
(LOP) and absolute Purchasing Power Parity (PPP) in two ways.
First, it uses a novel set of PPP data from the International
Comparison Programme for OECD countries and 195 internationally
comparable products from 1980 to 1996. Second, it derives and
applies a test of conditional sigma-convergence, which does not
require long time spans or high frequency data. Between 1990 and
1996 for 10 out of 23 countries a significant reduction in the
variance of the deviations from LOP is found for tradeables, but
none in case of non-tradeables. For the former, the deviations
from LOP close out at half-lives between 2.2 and 6.3 years.
However, there are also persistent country-specific deviations
from LOP parities.},
}