A panel stationarity test with gradual structural shifts: Re-investigate the international commodity price shocks

C-Tier
Journal: Economic Modeling
Year: 2017
Volume: 61
Issue: C
Pages: 181-192

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

This paper proposes a simple panel stationarity test which takes into account structural shifts and cross-section dependency. Structural shifts are modelled as gradual/smooth process with a Fourier approximation. The so-called Fourier panel stationarity test has a standard normal distribution. The Monte Carlo simulations indicate that (i) if the error terms are i.i.d, the test shows good size and power properties even in small samples; and (ii) if the error terms are serially correlated, the test has reasonable size and high power. We re-examine the behavior of the international commodity prices and find out an evidence on the persistence of shocks.

Technical Details

RePEc Handle
repec:eee:ecmode:v:61:y:2017:i:c:p:181-192
Journal Field
General
Author Count
2
Added to Database
2026-01-25