Unit roots and multiple structural breaks in real output: How long does an economy remain stationary?

Authors

  • Antonio E. Noriega Universidad de Guanajuato
  • Araceli Ramírez Zamora

DOI:

https://doi.org/10.24201/ee.v14i2.226

Keywords:

difference-stationary, trend-stationary, product

Abstract

Utilizing resampling methods, we present evidence on the rejection probabilities for difference-stationary and trend-stationary models for Mexico's real and real per capita annual gross domestic product. The trend stationary alternative allows for stationary fluctuations around a long-run trend function with endogenously determined multiple structural breaks, via global and sequential search methods. The number of breaks is determined using a unit-root rejection stopping rule and a parameter-constancy stopping rule.

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Published

1999-07-01

How to Cite

Noriega, A. E., & Ramírez Zamora, A. (1999). Unit roots and multiple structural breaks in real output: How long does an economy remain stationary?. Estudios Económicos De El Colegio De México, 14(2), 163–188. https://doi.org/10.24201/ee.v14i2.226