Skip to main content

A confirmatory analysis of the unit root hypothesis for OECD consumption-income ratios

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

This article investigates the existence of a unit root in the consumption-income ratio for a sample of 23 OECD countries over the period 1960 to 2005. For that purpose, we first use recently developed unit root tests with good size and power. Second, we employ the more powerful panel unit root tests of Pesaran (2003) and Smith et al. (2004) that take the null of nonstationarity and a bootstrap version of the test of Hadri (2000) that takes stationarity as the null hypothesis. Overall, our confirmatory analysis renders clear-cut evidence that OECD consumption-income ratios contain a unit root.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600949447

Affiliations: Department of Economics, Pablo de Olavide University, 41013 Seville, Spain

Publication date: September 1, 2008

More about this publication?
routledg/raef/2008/00000040/00000017/art00007
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more