We study the phenomenon of spurious regression between two random variables when the generating mechanism for individual series follows a stationary process around a trend with (possibly) multiple breaks in its level and slope. We develop relevant asymptotic theory and show that spurious...

In recent literature on multiple structural change, the number of breaks is determined through a sequential test of parameter constancy. This paper explores the possibility of determining the number of breaks in a time series by relating structural breaks to the behavior of unit roots. Thus,...

This paper analyzes whether the real exchange-rate of the Mexican peso/US dollar revert to a long-run equilibrium value, and whether this value is unique. We use a method for testing stationarity, that allows for an unknown number of structural breaks in the level of the series. Using a long...

This paper shows that the evolution of the level of Mexico real and real per capita output between 1895 and 2008 can be adequately described through a trend stationary model, affected by 4 structural breaks, which ocurred at dates that seem to coincide with domestic institutional arrangements,...