Using several different unit root/stationarity tests on single time series Konya (2000) found the logarithm of real GDP of most OECD countries behaving as a random walk during the last four decades. This outcome, however, might be due to the generally low power of these tests. The aim of this...

The aim of this paper is to analyze the rate and level of Australian unemployment, and also their logarithms, in the period of 1960 to 1997, with special regard to the unit-root versus stationarity hypotheses. Theoretically, the level of unemployment, the rate of unemployment and the logarithm...

This paper compares the basic properties of stationary autoregressive processes and random walks with special regard to their implications to unit root testing. In particular, it aims to answer three basic but important questions. Firstly: 'What do a constant term (drift) and a linear time trend...