Nonlinear Cointegration and Asymmetric Adjustment in Purchasing Power Parity of the USA, Germany, and Pakistan

<table class="table-group" id="tab3"><tr><td><table class="table"><tr><td class="thead-hr" colspan="4"><hr/></td></tr><tr class="thead"><td class="align_left">Variable name</td><td class="align_center">Lag</td><td class="align_center">Linear vs nonlinear</td><td class="align_center">ESTAR vs LSTAR</td></tr><tr><td class="thead-hr" colspan="4"><hr/></td></tr><tr><td class="align_left"><span style="width: 50.7231ptpx;"><svg height="11.8343pt" id="M145" style="vertical-align:-3.30932pt" version="1.1" viewbox="-0.0498162 -8.52498 50.7231 11.8343" width="50.7231pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M517 162C503 123 484 88 467 68C445 42 417 34 341 34C291 34 256 34 237 47C219 59 213 81 213 128V317H308C395 317 402 311 415 240H444V431H415C403 364 398 356 307 356H213V584C213 613 215 616 246 616H322C394 616 421 609 435 587C448 566 458 544 467 502L496 506C493 557 488 625 488 650H42V622C120 616 128 612 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<div>Linear vs nonlinear behavior of exchange rates.</div>

Complexity

tab3

Table 3

Table 3: Nonlinear Cointegration and Asymmetric Adjustment in Purchasing Power Parity of the USA, Germany, and Pakistan 