Cerrato, Mario; Kim, Hyunsok; MacDonald, Ronald - Department of Economics, Adam Smith Business School - 2008
OECD economies.
JEL Classi�cation: C16, C22, F31
Keywords: unit root tests, threshold autoregressive models, purchasing … power of unit root tests in small samples. Following Lothian and Taylor
(1996) researchers employed longer spans of data and … unit root.
"Secondgeneration"testsofPPPadvocatedadi�erentapproach. Sincethemain
problem with unit root tests is their lack …