This paper proposes new cointegration tests based on instrumental variable (IV) estimation. An important property of our tests is that the asymptotic distribution remains standard normal (or Chi-square) regardless of the number of regressors, differing deterministic terms, structural dummies,...

This paper examines the convergence of carbon dioxide (CO2) emissions in OECD countries. Specifically, we are interested in examining to what extent the per capita emissions of different countries tend to draw closer over time. This issue is important since this question is associated with...

This paper illustrates the importance of accounting for cross-correlations among panel data sets in examining stationarity. Strazicich et al. (2004) utilized the LM unit root tests with two trend shifts to examine the income convergence among twenty-one OECD countries. We revisit their analysis...