Cushman, David O.; Michael, Nils - In: Journal of International Money and Finance 30 (2011) 8, pp. 1619-1637
We analyze the possibility of nonlinear trend stationarity as the alternative to unit roots in 23 OECD real exchange rates, 1974–1998, by adding nonlinear time terms to the CIPS panel unit root test of Pesaran (2007). We follow a thorough bootstrapping approach and propose a technique to...