How large is average economic growth? : evidence from a robust method

H. Peter Boswijk; Philip Hans Franses

This paper puts forward a method to estimate average economic growth, andits associated confidence bounds, which does not require a formal decision onpotential unit root properties. The method is based on the analysis of eitherdifference-stationary or trend-stationary time series models, implementing the robustbootstrapping procedure advocated in Romano and Wolf (2001). Simulation evidence indicatesthe practical relevance of the method. It is illustrated on quarterly post-war USindustrial production.

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Year of publication:	2001
Authors:	Boswijk, Herman Peter ; Franses, Philip Hans
Publisher:	Rotterdam [u.a.] : Tinbergen Inst.
Subject:	Growth \| Unit root \| Robust testing \| Wirtschaftswachstum \| Economic growth \| Robustes Verfahren \| Robust statistics \| Einheitswurzeltest \| Unit root test \| Theorie \| Theory