Chen, Shyh-Wei - In: Economic Modelling 38 (2014) C, pp. 541-554
In this paper we examine three types of nonlinearities, i.e., nonlinearity stemming from structural breaks, sign … nonlinearity and size nonlinearity, for ten European countries and their importance to current account sustainability. For this … purpose, we apply a battery of linear and nonlinear unit root tests. Our results show that the structural break nonlinearity …