INCOME CONVERGENCE IN INDIAN DISTRICTS: NEW EVIDENCE FROM PANEL STATIONARITY TEST WITH FINITE TIME DIMENSION

2020 ◽  
Vol 32 (8) ◽  
pp. 1256-1272
Author(s):  
Biswa Swarup Misra ◽  
Muhsin Kar ◽  
Saban Nazlioglu ◽  
Cagin Karul
Keyword(s):  
Finite Time ◽  
Income Convergence ◽  
Time Dimension ◽  
Stationarity Test ◽  
Panel Stationarity ◽  
New Evidence

EXTERNAL SHOCKS, STRUCTURAL BREAKS AND UNEMPLOYMENT HYSTERESIS IN SELECTED ASIAN COUNTRIES

2019 ◽  
Vol 64 (03) ◽  
pp. 575-600
Author(s):  
QAISER MUNIR ◽  
SOOK CHING KOK ◽  
KASIM MANSUR
Keyword(s):  
Panel Data ◽  
Cross Section ◽  
Structural Breaks ◽  
Policy Implications ◽  
External Shocks ◽  
Asian Countries ◽  
Exogenous Shocks ◽  
Stationarity Test ◽  
The Cross ◽  
Panel Stationarity

This paper re-examines the hypothesis of unemployment hysteresis using panel data for 11 Asian countries for the period from 1980 to 2008. This study employs a variety of panel data unit root tests recently advanced by Bai and Ng (2004), Pesaran (2007) and Chang and Song (2009). The advantage of these tests is that they are able to exploit the cross-section variations of the series. In addition to these tests, a new powerful panel stationarity test proposed by Carrión-i-Silvestre et al. (2005) is applied which exploits the cross-section variations of the series and also allows for different numbers of endogenous breakpoints in the series. Our findings stress the importance of accounting exogenous shocks in the series and provide stronger evidence against the hypothesis of unemployment hysteresis for the countries analyzed. We also discover critical economic affairs which may cause the unemployment rates to fluctuate significantly. Policy implications are proposed through our observations.

ARE OECD MACROECONOMIC VARIABLES TREND STATIONARY? EVIDENCE FROM PANEL STATIONARITY TESTS ALLOWING FOR A STRUCTURAL BREAK AND CROSS-SECTIONAL DEPENDENCE

2009 ◽  
Vol 54 (03) ◽  
pp. 427-440 ◽  
Author(s):  
KADDOUR HADRI ◽  
YAO RAO
Keyword(s):  
Visual Inspection ◽  
Structural Break ◽  
Selection Procedure ◽  
Cross Sectional ◽  
Macroeconomic Variables ◽  
Deterministic Trend ◽  
Cross Sectional Dependence ◽  
Stationarity Test ◽  
Stationarity Tests ◽  
Panel Stationarity

This article applies the panel stationarity test with a break proposed by Hadri and Rao (2008) to examine whether 14 macroeconomic variables of OECD countries can be best represented as random walk or stationary fluctuations around a deterministic trend. In contrast to previous studies, based essentially on visual inspection of the break type or just applying the most general break model, we use a model selection procedure based on BIC. We do this for each time series so that heterogeneous break models are allowed for in the panel. Our results suggest, overwhelmingly, that if we account for a structural break, cross-sectional dependence and choose the break models to be congruent with the data, then the null of stationarity cannot be rejected for all the 14 macroeconomic variables examined in this article. This is in sharp contrast with the results obtained by Hurlin (2004), using the same data but a different methodology.

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