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Unit roots, postwar slowdowns and long-run growth: Evidence from two structural breaks

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  • Dan Ben-David
  • Robin L. Lumsdaine
  • David H. Papell

Abstract

This paper provides evidence on the unit root hypothesis and long-term growth by allowing for two structural breaks. We reject the unit root hypothesis for three-quarters of the countries – approximately 50% more rejections than in models that allow for only one break. While about half of the countries exhibit slowdowns following their postwar breaks, the others have grown along paths that have become steeper over the past 120 years. The majority of the countries, including most of the slowdown countries, exhibit faster growth after their second breaks than during the decades preceding their first breaks. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Dan Ben-David & Robin L. Lumsdaine & David H. Papell, 2003. "Unit roots, postwar slowdowns and long-run growth: Evidence from two structural breaks," Empirical Economics, Springer, vol. 28(2), pages 303-319, April.
    • Handle: RePEc:spr:empeco:v:28:y:2003:i:2:p:303-319
    DOI: 10.1007/s001810200132
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    Keywords

    Key words: unit root hypothesis; trend breaks; growth; JEL classification: C22; O1; O47; O5;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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