Daniel, Ventosa-Santaulària; Manuel, Gómez-Zaldívar - In: Journal of Time Series Econometrics 2 (2011) 2, pp. 1-26
Whilst the existence of a unit root implies that current shocks have permanent effects, in the long run, the simultaneous presence of a deterministic trend obliterates that consequence. As such, the long-run level of macroeconomic series depends upon the existence of a deterministic trend. This...