Wald/LM-type tests for a shift in mean often exhibit nonmonotonic power, due to incorrect estimation of long … experiments show that the modified tests have monotonic power against the mean with single or multiple breaks in finite samples. …

based test and the t test have better power for testing the hypothesis of zero intercept in the explosive process than in …

We compare the asymptotic local power of upper-tail unit root tests against an explosive alternative based on ordinary … initialisation, the QD-based tests are near asymptotically efficient and generally offer superior power to OLS-based approaches …; however, the power gains are much more modest than in the lower-tail testing context. We also find that asymptotically non …

regressors are highly persistent. The reduced convergence rates may sometimes lead to power losses in finite samples when testing … for no predictability, for instance. The note discusses a simple way of improving the local power of IVX-based tests … the power loss of IVX would have been maximal compared to the infeasible OLS-based test. …

-centrality parameter leads to important empirical power gains compared to using the ordinary least squares (OLS-)detrending method when …