Further evidence regarding nonlinear trend reversion of real GDP and the CPI

Gary L. Shelley, Frederick H. Wallace

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Abstract

This paper examines whether the CPI and real GDP for the US exhibit nonlinear reversion to trend as recently concluded by Beechey and Österholm [Beechey, M. and Österholm, P., 2008. Revisiting the uncertain unit root in GDP and CPI: testing for nonlinear trend reversion. Economics Letters 100, 221-223]. The wild bootstrap is used to correct for non-normality and heteroscedasticity in a nonlinear unit root test. The use of 'wild bootstrapped' critical values affects test conclusions in some cases. Results also are sensitive to the sample period examined. © 2011 Elsevier B.V.
Original languageSpanish
Pages (from-to)56-59
Number of pages4
JournalEconomics Letters
Volume112
StatePublished - 1 Jul 2011
Externally publishedYes

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