<p>Den här uppsatsen är skriven på uppdrag av GrenseTjänsten Morukulien, vilken är en organisation som hjälper personer, företag och andra organisationer som har ärenden i både Sverige och Norge.</p><p>Syftet med uppsatsen är att jämföra levnadskostnaderna för en tvåbarnsfamilj i Arvika- och Kongsvinger Kommun. Detta görs genom att se vilken familj som har störst köpkraft. Med köpkraft menas hur mycket man kan konsumera för sin disponibla inkomst.</p><p>Levnadskostnaderna jämförs för en genomsnittlig tvåbarnsfamilj. Undersökningen bygger på att alla kostnader läggs i boendelandet. Vidare utgås det ifrån att båda familjerna har samma konsumtionsbeteende som en genomsnittlig svensk tvåbarnsfamilj med jämförbar inkomst. Dessa antaganden förenklar undersökningen men riskerar samtidigt att undervärdera den norska familjens köpkraft.</p><p>Den disponibla inkomsten är nästan 40 procent högre för den norska familjen än för den svenska. Då är inte växelkursen medräknad. Därmed skiljer det ännu mer om man går till banken och växlar pengarna.</p><p>Men när det gäller köpkraften är vi intresserad av vilken mängd varor familjerna kan köpa i hemlandet för sin disponibla inkomst. Då de genomsnittliga kostnaderna är 22,2 procent högre i Norge än i Sverige utan hänsyn till växelkursen, blir slutsatsen av den här uppsatsen att den norska familjen har 14,0 procents större köpkraft än den svenska familjen.</p> / <p>This paper is written at the request of GrenseTjänsten Morukulien, which is an organization that helps people, companies and other organizations that have commisions in both Sweden and Norway.</p><p>The purpose of this paper is to compare the cost of living for a family with two children in Arvika and Kongsvinger and to find out which family who has the biggest purchasing power. The purchasing power is how much you can consume for your disposable income.</p><p>The cost of living is compared to a family with two children. The survey is based on the assumption that everything you consume, you consume in your native country. Furthermore it is assumed that both families and have the same consumption behavior as an average Swedish family with two children with a comparable income. These assumptions simplify the survey, but on the other hand, the risk of underestimating the Norwegian family´s purchasing power arises.</p><p>If you exclude the exchange rate, the disposable income is almost 40 percent higher for the Norwegian family than for the Swedish family. Therfore there´s an even bigger difference if one goes to the bank and exchanges money.</p><p>But when it comes to the purchasing power we are interested in how much the families can consume for the disposable income in their native country. The average prices are 22,2 percent higher in Norway than in Sweden, without consideration to the exchange rate. The conclusion of this paper is that the Norwegian family has 14,0 percent more purchasing power than the Swedish family.</p>

<p>According to the different studies regarding customs unions and monetary unions, both these types of economic integration will lead to increased trade which in turn affects the price level.</p><p>In this study, the changes in the price levels across Europe are investigated in order to see if the changes can be attributed to the EMU and the Euro. By using the PPPs calculated by OECD based on the theory of Purchasing Power Parity price levels in different countries become comparable between the countries and over time. The result is that there seems to be a clear convergence towards an average European price level in the observed period 1980-2005.</p><p>In order to investigate if this convergence is an effect of the EMU a panel regression on relevant data is run and the result shows that there has been a convergence in the EMU-price level, but it can most likely not be attributed to the Euro, but other factors like for example increased degrees of openness.</p>

According to the different studies regarding customs unions and monetary unions, both these types of economic integration will lead to increased trade which in turn affects the price level. In this study, the changes in the price levels across Europe are investigated in order to see if the changes can be attributed to the EMU and the Euro. By using the PPPs calculated by OECD based on the theory of Purchasing Power Parity price levels in different countries become comparable between the countries and over time. The result is that there seems to be a clear convergence towards an average European price level in the observed period 1980-2005. In order to investigate if this convergence is an effect of the EMU a panel regression on relevant data is run and the result shows that there has been a convergence in the EMU-price level, but it can most likely not be attributed to the Euro, but other factors like for example increased degrees of openness.

Den här uppsatsen är skriven på uppdrag av GrenseTjänsten Morukulien, vilken är en organisation som hjälper personer, företag och andra organisationer som har ärenden i både Sverige och Norge. Syftet med uppsatsen är att jämföra levnadskostnaderna för en tvåbarnsfamilj i Arvika- och Kongsvinger Kommun. Detta görs genom att se vilken familj som har störst köpkraft. Med köpkraft menas hur mycket man kan konsumera för sin disponibla inkomst. Levnadskostnaderna jämförs för en genomsnittlig tvåbarnsfamilj. Undersökningen bygger på att alla kostnader läggs i boendelandet. Vidare utgås det ifrån att båda familjerna har samma konsumtionsbeteende som en genomsnittlig svensk tvåbarnsfamilj med jämförbar inkomst. Dessa antaganden förenklar undersökningen men riskerar samtidigt att undervärdera den norska familjens köpkraft. Den disponibla inkomsten är nästan 40 procent högre för den norska familjen än för den svenska. Då är inte växelkursen medräknad. Därmed skiljer det ännu mer om man går till banken och växlar pengarna. Men när det gäller köpkraften är vi intresserad av vilken mängd varor familjerna kan köpa i hemlandet för sin disponibla inkomst. Då de genomsnittliga kostnaderna är 22,2 procent högre i Norge än i Sverige utan hänsyn till växelkursen, blir slutsatsen av den här uppsatsen att den norska familjen har 14,0 procents större köpkraft än den svenska familjen. / This paper is written at the request of GrenseTjänsten Morukulien, which is an organization that helps people, companies and other organizations that have commisions in both Sweden and Norway. The purpose of this paper is to compare the cost of living for a family with two children in Arvika and Kongsvinger and to find out which family who has the biggest purchasing power. The purchasing power is how much you can consume for your disposable income. The cost of living is compared to a family with two children. The survey is based on the assumption that everything you consume, you consume in your native country. Furthermore it is assumed that both families and have the same consumption behavior as an average Swedish family with two children with a comparable income. These assumptions simplify the survey, but on the other hand, the risk of underestimating the Norwegian family´s purchasing power arises. If you exclude the exchange rate, the disposable income is almost 40 percent higher for the Norwegian family than for the Swedish family. Therfore there´s an even bigger difference if one goes to the bank and exchanges money. But when it comes to the purchasing power we are interested in how much the families can consume for the disposable income in their native country. The average prices are 22,2 percent higher in Norway than in Sweden, without consideration to the exchange rate. The conclusion of this paper is that the Norwegian family has 14,0 percent more purchasing power than the Swedish family.

Purchasing power parity (PPP) is considered as an important theory of explaining how exchange rate varies in the long run. Most of empirical studies in the past adapted linear cointegration method to test the purchasing power parity. However, there are papers point out that exchange rate exists non-linear cointegration and unexplainable bias might exist in testing the purchase power parity theory while using linear cointegration test. The methodology of this study is based on an application of ESTR ECM proposed by Kapetaniosetet al. to enhance the inadequate of linear cointegration test. We analyze the dynamic adjusting behavior of short-term nominal exchange rate with ESTR ECM model while the non-linear cointegratoin exists. The empirical result indicates that the purchase power parity between Taiwan and its major trading countries is confirmed. Among the trading countries, American, Japan and Hong Kong are suitable for using linear error correction model and non-linear error correction model for Singapore and Korea.

The studies of exchange rate theory in international finance are divided into several schools. Purchasing Power Parity (PPP) is one important hypothesis in both the Monetary Exchange Rate theory and the main theory in the Open Macroeconomics Model. Although many models are found upon the existence of PPP, but it still has not been proved empirically. That is why it¡¦s important to examine the existence of PPP. In the past, the statistic analyzing processes are all made directly under the models since all variables have been assumed stationary. However, regressing two non-stationary variables may result in Spurious Regression. The Unit Roots Test and Cointegration Test are developed in order to avoid the problem of spurious regression. Therefore, Unit Roots Test and Cointegration Test should be applied to the variables before estimating during regression analyses. Concerning the power deficiency of Unit Roots Test and Cointegration Test, many researches have adopted the combination time-series and cross-section Panel Data Model in order to improve the power and limitation of small samples. The Panel-Unit Root Test and Panel-Cointegration Test have therefore been developed to avoid Spurious Regression. However, Panel-Unit Root Test and Panel-Cointegration Test are applied with long time-series and large cross-section. Nevertheless, obtaining the data has always been the toughest difficulty during empirical researches, let alone the need for long period and large unit data. These Panel Data Models can only be applied to studies for long period, but not to the short periods. In order to avoid these problems; Binder, Hsiao and Pesaran (2004) have developed the Short Panel Vector Autoregressions (sPVAR) Model, a Panel Data Model developed with short time-series and large cross-section. Therefore, this paper will focus on Purchasing Power Parity under the sPVAR Model with the examination of PPP for the 30 countries since the introduction of Euro (1998 to 2004).

The present thesis provides a definite answer to the question of how comparisons of certain aggregate quantities and price levels should be made across two or more geographic regions. It does so from the viewpoint of both economic theory and the “test” (or “axiomatic”) approach to index-number theory. Chapter 1 gives an overview of the problem of multilateral interspatial comparisons and introduces the rest of the thesis. Chapter 2 focuses on a particular domain of comparison involving consumer goods and services, countries and households in developing a theory of international comparisons in terms of the the (Kontis-type) cost-of-living index. To this end, two new classes of purchasing power parity measures are set out and the relationship between them is explored. The first is the many-household analogue of the (single-household) cost-of-living index and, as such, is rooted in the theory of group cost-of-living indexes. The second Consists of sets of (nominal) expenditure-share deflators, each corresponding to a system of (real) consumption shares for a group of countries. Using this framework, a rigorous exact index- number interpretation for Diewert’s “own-share” system of multilateral quantity indexes is provided. Chapter 3 develops a novel multilateral test approach to the problem at hand by generalizing Eichhorn and Voeller’s bilateral counterpart in a sensible manner. The equivalence of this approach to an extended version of Diewert’s multilateral test approach is exploited in an assessment of the relative merits of several alternative multilateral comparison formulae motivated outside the test-approach framework. Chapter 4 undertakes an empirical comparison of the formulae examined on theoretical grounds in Chapter 3 using an appropriate cross-sectional data set constructed by the Eurostat—OECD Purchasing Power Parity Programme. The principal aim of this comparison is to ascertain the magnitude of the effect of choosing one formula over another. In aid of this, a new indicator is proposed which facilitates the measurement of the difference between two sets of purchasing power parities, each computed using a different multilateral index-number formula.

This dissertation comprises two essays. The first essay develops and tests a theoretical model that provides new insights when markets are partially segmented and the purchasing power parity (PPP) is violated which seems to be the case for the majority of national markets. The theoretical part derives closed form solutions for asset prices and portfolio holdings. Particularly, we show that deviations from PPP in mildly segmented markets induce a new form of systematic risk, termed segflation risk, and in equilibrium investors require compensation for this risk. A strong feature of the model is that it provides a theoretical framework for testing important issues; such as, pricing of foreign exchange risk and world market structure. The model also nests several existing international asset pricing models and thus provides a framework to distinguish empirically between competing models. The empirical part of the essay provides an empirical validation of the model for eight major emerging markets. The results give support to the model and point to the importance of the segflation risk which is statistically and economically significant. / The second essay uses our theoretical model to address the question of whether the IFC investable indices are priced globally or locally. Indeed S&P/IFC provides two emerging market indices: the IFC global index (IFCG) and its subset the IFC investable index (IFCI). Since the IFCI is fully investable, both the academic and practitioners implicitly assume that this subset of emerging markets is priced in the global context. This is a critical assumption for corporate finance decisions and portfolio management. Hence, this essay investigates the pricing behavior of the IFCI index returns using a conditional version of our model that allows for segmentation and PPP deviations. The results suggest that local factors are important in explaining returns of the IFC investable indices and that the return behavior of IFCI indices is similar to that of the IFCG.

Thesis (Ph. D.)--University of California, San Diego, 2000. / Vita. Includes bibliographical references.

Thesis (Ph. D.)--Iowa State University, 1994. / Includes bibliographical references (leaves 203-219).