Liu, Tie-Ying; Su, Chi-Wei; Jiang, Xu-Zhao - In: Economic Modelling 37 (2014) C, pp. 492-499
In this study, we apply a stationarity test with a flexible Fourier function proposed by Enders and Lee (2012) to test the stationarity of the deficit–GDP ratio in China. We find that our approximation has a higher power to detect U-shaped breaks and to smooth breaks than the linear method if...