This is a corrigendum. We correct the mistakes in Basci and Caner, "Are Real Exchange Rates Nonlinear or Non-stationary? Evidence from a New Threshold Unit Root Test" 2005, vol.9.4, Article 2.

This paper extends the previous results in Bessler and Yu (1994) on the official and black market exchange rates in Brazil. Rather than taking instantaneous data transformations to produce a stable long-run equilibrium relationship as Bessler and Yu did, the possibility of structural changes in...

Nonlinear models, especially threshold autoregressive [TAR] and exponential smooth transition autoregressive [ESTAR] classes, are widely applied for modeling real exchange rates in order to examine the validity of purchasing power parity [PPP]. Even though the nonlinear models are theoretically...

Even though there is little evidence for linear cointegration, Christopoulos and Leon-Ledesma (2007) recently have found nonlinear cointegrating relations between the US quarterly nominal interest rate and CPI inflation rate. Through Monte Carlo simulations, they also show that the nonlinear...

Threshold-type nonlinear relations are pretty popular in modelling the deviations from purchasing power parity. This article shows that there is a close relation between the nonlinear band Threshold Autoregressive (TAR) models studied by Obstfeld and Taylor (1997) and Stochastic Unit Root (STUR)...

Employing disaggregated real exchange rates from nine European counties in 16 goods categories, we assess in this study the nonlinearity in the real exchange rates. Surprisingly, we find evidence for nonlinearity in only four (10) out of 143 series with the linearity test proposed by Harvey et...

The U.S. unemployment rate is generally regarded as nonlinear. In this study, we show that if there had been no miners' general strike in October of 1949, and if the aggregate unemployment rate had been 0.3% lower during that month, the 1948-2002 U.S. unemployment rate would have been linear....