demonstrate that the form of the LBI test differs between stock and flow variables. In cases where the data are observed at … we show that the LBI test for stock (flow) variables is (is not) consistent against a fixed alternative as the sampling … standard stationarity test in the discrete-time local level model. Here we also show that the asymptotic local power of the LBI …

tests which are asymptotically similar under the null, belong to the locally best invariant (LBI) test statistics. The …