We investigate the performance of a battery of standard unit root tests when the true data generating process has a Markov-switching trend growth rate and variance. Regime switching under both the null hypothesis of a unit root and the alternative hypothesis of trend stationarity is considered. In contrast to the case of a single break in trend growth rate, multiple Markov-switching breaks unde...

2 Introduction 3 NAIRU vs. Keynes: conflicting theories of unemployment 4 Empirical work (review) 6 Econometric method 7 Testing the NAIRU story 8 Testing the Keynesian story 11 Combining NAIRU and Keynesian factors 12 Conclusion 14 Bibliography 15 Tables 17 Table 1. A NAIRU model 17 Table 2. A Keynesian model 18 Table 3. Unmployment regression: u = c + ∆ infl + rr + ud + tw + tot 19 Table 4. U...

The unit root test proposed by Ranjbar et al. (2018) was examined for an alternative of stationary asymmetric exponential smooth transition autoregressive (AESTAR) under structural breaks. situation that stands out as a deficiency in the mentioned study model does not includes zero-mean structure taken into account. On contrary, features should also had been explained. Because time-varying dete...

The main objective of this paper is to shed light on the problem of low power for the Dickey-Fuller type unit root tests. It is argued that the low power is primarily due to the non-nestedness of the Autoregressive (AR(1)) and the Unit Root (UR(1)) models. The paper proposes an AR(1) model with Conditional Heterogeneity (ARCHET(1)) which parametrically encompasses the UR(1) model. A number of s...

This study is held in order to determine whether some Middle Eastern countries have converged EU terms of economy and politics as dimensions globalization. Existence any convergence tested via Harvey ve Leybourne (2008) linearity tests. It has been deduced that Quwait EU-27 average from the point economic globalization country also EU-15 social Similarly, Saudi Arabia EU-9 avearges socail Egypt...