Relative Form of PPP financial definition of Relative …
Mild degrees of obesity even seemed to provide protection from current smoking as the relative risk of death among smokers was lowest in overweight group.As prevalence of obesity among children is also increasing, by intuition the hypothesis should predict that it should be complementary to adult obesity.
What is the exact form for relative PPP
This paper examines the PPP hypothesis analysing the behaviour of the real exchange rates vis-à-vis the US dollar for four major currencies (namely, the Canadian dollar, the euro, the Japanese yen and the British pound). An innovative approach based on fractional integration in a multivariate context is applied to annual data from 1970 to 2011. Long memory is found to characterise the Canadian dollar, the British pound and the euro, but in all four cases the results are consistent with the relative version of PPP.
One of the key problems is that people in different countries consumer very different sets of goods and services, making it difficult to compare the purchasing power between countries.