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• W36600900 abstract "Nelson and Plosser (1982) pointed out that whether real output levels are modeled as a trend stationary or as a difference stationary process has important implications vis-a-vis macroeconomic policymaking, modeling, testing, and forecasting. Studies of this issue are of considerable concern to researchers conducting empirical studies and to policymakers. Numerous studies have found support for a unit root in real output levels, but critics have staunchly contended that the drawing such a conclusion may be attributed to the low power of conventional unit root tests employed when compared with near-unit-root but stationary alternatives. Furthermore, conventional unit root tests have reportedly failed to consider information across regions, thereby reflecting less efficient estimations. It should therefore not be unexpected that these shortcomings have seriously called into question many of the earlier findings that are based on a unit root in real output levels. One feasible way to increase power when testing for a unit root is, of course, to use panel data. Breuer et al. (2001) and Taylor and Taylor (2004) showed that the recent methodological refinements of the Levin-Lin-Chu (2002) test fail to fully address the “all-or-nothing” nature of the test. Because they are joint tests of the null hypothesis, they are not informative with regard to the number of series that are stationary processes when the null hypothesis is rejected. Breuer et al. (2001) further claimed that, by analogy to simple regression when an F-statistic rejects the null that a vector of coefficients is equal to zero, it does not follow that each coefficient is nonzero. Similarly, when the unit-root null hypothesis is rejected, it may be erroneous to conclude that all series in the panel are stationary." @default.
• W36600900 created "2016-06-24" @default.
• W36600900 creator A5035076770 @default.
• W36600900 date "2011-04-01" @default.
• W36600900 modified "2023-09-28" @default.
• W36600900 title "Is Per Capita Real GDP Stationary? An Empirical Note for 16 Transition Countries" @default.
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