This paper provides evidence on the unit root hypothesis and long-term growth by allowing for two structural breaks. We reject the unit root hypothesis for three-quarters of the countries approximately 50% more rejections than in models that allow for only one break. While about half of the...

There has been extensive research on testing for unit roots in the presence of structural change and on testing for unit roots in panels. This chapter takes a small step towards combining the two research agendas.We propose a unit root test for non-trending data in the presence of a one-time...

Determining whether per capita output can be characterized by a stochastic trend is complicated by the fact that infrequent breaks in trend can bias standard unit root tests towards non-rejection of the unit root hypothesis. The bulk of the existing literature has focused on the application of...