system and the current managed float. Panel integration techniques are used to increase the power of the tests. Cross section … interest parity ; nominal exchange rate regime ; panel unit roots ; common factors …

performance of homogenous panel unit root tests in the presence of permanent volatility shifts. It is shown that in this case …, panel unit root tests derived under time invariant innovation variances lose control over actual significance levels while … hypothesis. -- Panel unit root tests ; variance breaks ; cross sectional dependence ; Fisher hypothesis …