This paper analyses the convergence of US house prices. Our results confirm the existence of some degree of segmentation in the US housing market. We also provide robust evidence that the bursting of the housing price bubble has altered this market, observing different results when the sample...

This paper analyses to what extent the Spanish regions have undergone a process of convergence since 1980. The application of unit root techniques to the data of the Human Development Index allow us to show that the evolution of the Spanish economy can be understood as a sum of divergent forces,...

This paper examines the asymptotic and finite sample behaviour of the ADF and Phillips-Perron statistics under the presence of a break in the trend function. We prove that the break magnitude affects these two statistics in a similar way, drawing them closer the acceptance zone, the higher the...

This paper considers the behaviour of the Dickey-Fuller tests when the variable being studied is generated according to Perron's (1989) crash hypothesis. We show that these statistics tend towards the Dickey-Fuller distributions under the null hypothesis and diverge towards -[infinity] under the...

El objetivo del presente trabajo se centra en verificar el cumplimiento de la Ley de Precio Unico (LPU) en mercados separados espacialmente, utilizando el enfoque de cointegración. Se han considerado dos mercados: trigo y cebada, y cuatro zonas productoras-consumidoras de dichos cereales: Ebro,...

We find non-linearities in the U.S. long-run relationships among trend inflation, growth rate and financial frictions. Moreover, our results show that mismeasurements of the natural rate of interest deviate the trend inflation from its target, which is especially clear when monetary policy...

Given the unobservable quality of the natural rate of interest, the consequences of central banks using an incorrect value in the monetary policy rule are analyzed in a New Keynesian DSGE model with endogenous growth, financial frictions and trend inflation. Our results confirm the financial...