Addo, Peter Martey; Billio, Monica; Guegan, Dominique - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2011
problem of properly distinguishing the transition function in relation to extreme parameter combinations often leads to … getting strongly biased estimators. This paper proposes a new procedure to test for the unit root in a nonlinear framework … performance of the test and then to highlight its power gain over existing tests for a unit root. We proposed two applications. …