scholarly journals Single European Railway Area and the Problem of Rail Infrastructure Charges - Case Studies in V4 Countries

2021 ◽  
Vol 23 (4) ◽  
pp. A208-A222
Author(s):  
Anna Dolinayová ◽  
Igor Dömény ◽  
Jan Jansák ◽  
Peter Šulko
Keyword(s):  
Case Studies ◽  
Purchasing Power Parity ◽  
Capacity Utilization ◽  
Purchasing Power ◽  
Power Parity ◽  
Railway Stations ◽  
The Real ◽  
Charging System ◽  
Rail Infrastructure ◽  
Infrastructure Charges

This paper deals with the charging system and rail infrastructure fees use in V4 countries. The goal was to find out how the charges differ in terms of the train type, weight and distance traveled on different track categories. The charging principle for minimum access packages and for the access and services supplied in service facilities was investigated. Due to different technical, technological and other conditions for the rail infrastructure capacity utilization, the modeled situation was compared to the real one. This research shows differences between individual countries, both in the charging system and in the price for the rail infrastructure use (the prices were recalculated to € and in the PPP-purchasing power parity). It is interesting that the differences are not only significant with regard to the category of track used and the train's weight (especially in the freight transport), but with regard to other factors, as well, in particular the type of train and price for the use of railway stations.

Purchasing Power Parity and Real Exchange Rates

2019 ◽  
Author(s):  
Menzie D. Chinn
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Real Exchange Rate ◽  
Purchasing Power Parity ◽  
Time Horizon ◽  
Nominal Exchange Rate ◽  
Purchasing Power ◽  
Power Parity ◽  
The Real ◽  
Short Run

The idea that prices and exchange rates adjust so as to equalize the common-currency price of identical bundles of goods—purchasing power parity (PPP)—is a topic of central importance in international finance. If PPP holds continuously, then nominal exchange rate changes do not influence trade flows. If PPP does not hold in the short run, but does in the long run, then monetary factors can affect the real exchange rate only temporarily. Substantial evidence has accumulated—with the advent of new statistical tests, alternative data sets, and longer spans of data—that purchasing power parity does not typically hold in the short run. One reason why PPP doesn’t hold in the short run might be due to sticky prices, in combination with other factors, such as trade barriers. The evidence is mixed for the longer run. Variations in the real exchange rate in the longer run can also be driven by shocks to demand, arising from changes in government spending, the terms of trade, as well as wealth and debt stocks. At time horizon of decades, trend movements in the real exchange rate—that is, systematically trending deviations in PPP—could be due to the presence of nontraded goods, combined with real factors such as differentials in productivity growth. The well-known positive association between the price level and income levels—also known as the “Penn Effect”—is consistent with this channel. Whether PPP holds then depends on the time period, the time horizon, and the currencies examined.

scholarly journals Identifying The Purchasing Power Parity of Indonesia Rupiah (IDR) based on BIG MAC Index

2016 ◽  
Vol 17 (2) ◽  
pp. 210
Author(s):  
Tongam Sihol Nababan
Keyword(s):  
Exchange Rate ◽  
Purchasing Power Parity ◽  
Real Income ◽  
Purchasing Power ◽  
Power Parity ◽  
The Real ◽  
The People ◽  
The Usa ◽  
The Exchange Rate ◽  
Asean Countries

The aim of this study is to identify : (1) profile of exchange rate and purchasing power parity of IDR against US $ based on Big Mac Index compared to the exchange rate of other countries, and (2) the position of the Big Mac Affordability of  Indonesia compared to other ASEAN countries. The results showed that based on Big Mac index during the period April 1998 up to January 2015, IDR exchange rate tends to be undervalued against the USA dollar. The cause of the currency tends to be in a position of undervalued due to the components of non-tradable have not been included in Big Mac index. The index of Big Mac Affordability indicates that there is a great disparity of income between Singapore and five other ASEAN countries. The purchasing power of the real income of the people in Singapore is nearly five times the real income of the people in Indonesia.

scholarly journals The Validity of the Purchasing Power Parity Hypothesis for Kuwait

2016 ◽  
Vol 11 (1) ◽  
pp. 188
Author(s):  
Ebrahim Merza
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Purchasing Power Parity ◽  
Unit Roots ◽  
Purchasing Power ◽  
Power Parity ◽  
Monthly Data ◽  
The Real ◽  
The Us ◽  
Augmented Dickey Fuller

Many studies have tested the null hypothesis of the unit root of the real exchange rate to examine the validity of the purchasing power parity (PPP) hypothesis. Previous studies have reached different conclusions regarding that issue. This study tests the hypothesis of PPP in Kuwait using two tests of unit roots, the Augmented Dickey Fuller (ADF) and Phillips Perron (PP) tests. Using monthly data from 2006 to 2015, both tests reject the PPP hypothesis for the Kuwaiti economy. Using the components of the real exchange rate, we find that the levels of prices in both Kuwait and the US are not moving together to provide stationarity for the real exchange rate. This result could be attributed to the large increases in the prices of the housing and food and beverages sectors in Kuwait during that time.

scholarly journals Testing For Purchasing Power Parity In A Panel Of Middle-Eastern Countries

2011 ◽  
Vol 4 (12) ◽  
Author(s):  
Hala El-Ramly
Keyword(s):  
Middle East ◽  
Exchange Rates ◽  
Purchasing Power Parity ◽  
Unit Root ◽  
Middle Eastern ◽  
Real Exchange Rates ◽  
Purchasing Power ◽  
Power Parity ◽  
The Real ◽  
The Mean

The attention given to testing for purchasing power parity (PPP) using middle-eastern data has so far been very limited. This paper tests for PPP in a panel of twelve countries from the Middle East. Four different unit root procedures are used to test for the mean reversion property in the real exchange rates of these countries. The evidence in support of PPP in the tested panel is generally found to be weak.

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