BEHAVIOR OF DICKEY–FULLER t-TESTS WHEN THERE IS A BREAK UNDER THE ALTERNATIVE HYPOTHESIS

B-Tier
Journal: Econometric Theory
Year: 2000
Volume: 16
Issue: 5
Pages: 779-789

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper analyzes the limiting behavior of Dickey–Fuller t-tests when the true generating model is stationary around a broken linear trend. The cases of a break in level and a break in slope are considered separately and found to generate qualitatively different outcomes. In the asymptotic analysis, appropriate normalizations are applied to the break sizes. This leads to theoretical results that generate interesting predictions for sample sizes and break amounts of practical interest. Simulation evidence confirms the value of this approach to an asymptotic theory.

Technical Details

RePEc Handle
repec:cup:etheor:v:16:y:2000:i:05:p:779-789_16
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25