Cointegration Testing in Single Error‐Correction Equations in the Presence of Linear Time Trends

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 2000
Volume: 62
Issue: 5
Pages: 621-632

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Banerjee, Dolado and Mestre (J. Time Ser. Anal. 19 (1998) 267−283)introduce an error‐correction test for the null hypothesis of no cointegration. The present paper supplements their work. They provide critical values forregressions with and without detrending. Here it is shown that the latter arenot appropriate if the series display linear trends. This does not mean thatdetrending is required. Correct percentiles are suggested for the case thatseries follow linear time trends but tests are based on regressions withoutdetrending. They are readily available from the literature.

Technical Details

RePEc Handle
repec:bla:obuest:v:62:y:2000:i:5:p:621-632
Journal Field
General
Author Count
1
Added to Database
2026-01-25