This paper considers approximating the nite sample null-distribution of a test statistic as its asymptotic distribution under a local alternative. We focus on the Likelihood Ratio test for the rank of cointegration and use nonlinearities that represent some nite sample distributional features....

European indicators have been tailored to monitor the supposed free rider problem of European project and have concentrated on public finance stability at an aggregate level. A maturing Union should now turn towards two aspects of its sustainability. The first one is the internal stability and...