Confidence intervals for half-life deviations from purchasing power parity

Existing point estimates of half-life deviations from purchasing power parity (PPP), around 3-5 years, suggest that the speed of convergence is extremely slow. This article assesses the degree of uncertainty around these point estimates by using local-to-unity asymptotic theory to construct confidence intervals that are robust to high persistence in small samples. The empirical evidence suggests that the lower bound of the confidence interval is between four and eight quarters for most currencies, which is not inconsistent with traditional price-stickiness explanations. However, the upper bounds are infinity for all currencies, so we cannot provide conclusive evidence in favor of PPP either. © 2005 American Statistical Association.

Low-loss directional cloaks without superluminal velocity or magnetic response.

The possibility of making an optically large (many wavelengths in diameter) object appear invisible has been a subject of many recent studies. Exact invisibility scenarios for large (relative to the wavelength) objects involve (meta)materials with superluminal phase velocity [refractive index (RI) less than unity] and/or magnetic response. We introduce a new approximation applicable to certain device geometries in the eikonal limit: piecewise-uniform scaling of the RI. This transformation preserves the ray trajectories but leads to a uniform phase delay. We show how to take advantage of phase delays to achieve a limited (directional and wavelength-dependent) form of invisibility that does not require loss-ridden (meta)materials with superluminal phase velocities.