In this study we use both the structural break model and duration dependent transition model to study the characteristics of China's GDP growth from 1953 to 2009. The empirical results show that China's economic growth had become more stable since the economic reform in the end of the 1970s, and...

According to one definition inflation persistence is the time that it takes for the inflation to return to its long run level after a shock. If this time is long it means that inflation persistence is high. If the economic structure poseses such a feature, it may require more effort to keep the...

This paper re-examines the Purchasing Power Parity (PPP) hypothesis in which the endogenously determined break points are incorporated in thirteen major Middle East and Northern Africa (MENA) countries by using official and black market exchange rates data over 1970-1998. We utilize Lagrange...

The present paper considers Dickey-Fuller-type unit root tests which account for a structural break occurring at an unknown point in time. The break is modelled by an innovational outlier approach. Provided that the break date is estimated correctly, the exact invariance to a mean and a slope...

The paper examines the short-run spillover effects of daily stock returns and volatilities between the Standard & Poor's (S&P) 500 stock index in the US and the Shanghai Stock Exchange (SSE) index in China. First, we find that a structural break occurred in the SSE stock return mean in December...

This study analyses consumption in urban China by use of monthly data for the 1990-2007. The error-correction model reveals a long-run relationship between real consumption, real disposable income, inflation and the shortterm interest rate. Inflation is in relative terms more important to the...

Monitoring the behavior of potential output helps policymakers implement appropriate policies in response to an economic crisis. In the short-run, estimates of the output gap will guide the timing of implementation and withdrawal of stimulus measures. In the medium- to long-term, these estimates...

This paper empirically explores the present relationship between inflation and economic growth in the context of Bangladesh. Using annual data set on real GDP and CPI for the period of 1980 to 2005, an assessment of empirical evidence has been acquired through the co-integration and error...

The score on a reading literacy test of 15 years old Italian students is here analyzed. The data depict a fracture in the Italian school system. By means of quantile regressions and by repeatedly implementing a quantile regression based test for structural break, computed in different...

This paper considers tests for structural breaks in linear models when the regressors and the serially dependent error process are unstable. The set of models contains various economic circumstances such as the structural breaks in the regressors and/or the error variance, and a linear trend...