The sup<InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$LM$$</EquationSource> </InlineEquation> test for structural change is embedded into a permutation test framework for a simple location model. The resulting conditional permutation distribution is compared to the usual (unconditional) asymptotic distribution, showing that the power of the test can be clearly improved in...</equationsource></inlineequation>

Three classes of structural change tests (or tests for parameter instability) that have been receiving much attention in both the statistics and the econometrics communities but have been developed in rather loosely connected lines of research are unified by embedding them into the framework of...