Mean Reversion of Balance of PaymentsÂ¡GEvidence from Sequential Trend Break Unit Root Tests

We analyze the G7 countries data set of real balance of payments series. The unit root tests with an endogenously determined break date in the trend function proposed by Zivot and Andrews (1992) is employed to characterize the balance of payments series. The empirical results show that allowing for a break in the trend function could alter the outcome of the standard unit root tests for some series.

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Year of publication:	2008
Authors:	Wang, Jue-Shyan ; Lin, Mei-Yin
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 6.2008, 4, p. 1-10
Publisher:	AccessEcon
Subject:	Balance of payments

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	F4 - Macroeconomic Aspects of International Trade and Finance ; C2 - Econometric Methods: Single Equation Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005110726