Testing the Prebish–Singer hypothesis using second-generation panel data stationarity tests with a break

In this paper, we test the Prebish–Singer (PS) hypothesis, which states that real commodity prices decline in the long run, using two recent powerful panel data stationarity tests accounting for cross-sectional dependence and a structural break. We find that the hypothesis cannot be rejected for most commodities other than oil.

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Year of publication:	2012
Authors:	Arezki, Rabah ; Hadri, Kaddour ; Kurozumi, Eiji ; Rao, Yao
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 117.2012, 3, p. 814-816
Publisher:	Elsevier
Subject:	Panel data \| Stationarity tests \| Cross-sectional dependence \| Prebish–Singer hypothesis \| Structural break

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Type of publication:	Article
Classification:	C12 - Hypothesis Testing ; C33 - Models with Panel Data ; N50 - Agriculture, Natural Resources, Environment, and Extractive Industries. General, International, or Comparative ; O13 - Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Q32 - Exhaustible Resources and Economic Development
Source:	RePEc - Research Papers in Economics

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