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 language | Spanish |
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Pages (from-to) | 56-59 |
Number of pages | 4 |
Journal | Economics Letters |
Volume | 112 |
State | Published - 1 Jul 2011 |
Externally published | Yes |