The aim of this paper is to analyse, according to the new trade theories, the changes in the trade of Catalonia -a Spanish region- from the trade liberalisation due to the Spanish integration in the European Community. Concretely we examine if the changes in trade are predominantly of the...

The aim of this paper is to analyse, according to the new trade theories, the changes in the trade of Catalonia -a Spanish region- from the trade liberalisation due to the Spanish integration in the European Community. Concretely we examine if the changes in trade are predominantly of the...

This paper revisits the empirical analysis in Cecchetti, Mark and Sonora (2002) involving long-span U.S. city prices, who estimated the persistence of U.S. price differentials to be around nine years. After controlling for the structural breaks in the data, we find that U.S. city price level...

The paper proposes statistics to test the null hypothesis of no cointegration in panel data when common factors drive the cross sectional dependence. We consider both the case in which regressors are independent of the common factors and the case in which regressors are correlated with the...

This paper tests for real interest parity (RIRP) among the nineteen major OECD countries over the period 1978:Q2-1998:Q4. The econometric methods applied consist of combining the use of several unit root or stationarity tests designed for panels valid under cross-section dependence and presence...

Spurious regression analysis in panel data when time series are cross-section dependent is analyzed in the paper. We show that consistent estimation of the long-run average parameter is possible once we control for cross-section dependence using cross-section averages in the spirit of the common...

Panel cointegration, structural break, common factors, cross-section dependence