In this paper we test whether GDP series in 12 European Union countries are integrated or are stationary around a deterministic component that may change gradually and smoothly between two regimes over time. We find that in two-thirds of cases there appears to be a role for modelling with...

Economic liberalization has been a pervasive phenomenon over the last twenty years. Programs have been initiated on the assumption that liberalization promotes economic growth but the empirical evidence for this is limited. This paper takes a novel approach to modeling growth and structural...