A simple unit root test against asymmetric STAR nonlinearity with an application to real exchange rates in Nordic countries

More powerful panel data unit root tests

More powerful panel data unit root tests with an application to mean reversion in real exchange rates

✍ L. Vanessa Smith; Stephen Leybourne; Tae-Hwan Kim; Paul Newbold 📂 Article 📅 2004 🏛 John Wiley and Sons 🌐 English ⚖ 153 KB

## Abstract Unit root tests, seeking mean or trend reversion, are frequently applied to panel data. We show that more powerful variants of commonly applied tests are readily available. Moreover, power gains persist when the modifications are applied to bootstrap procedures that may be employed when