Is OECD Real Per Capita GDP Trend or Difference Stationary?: Evidence from Panel Unit Root Tests

Posted: 3 May 1999

See all articles by Adrian R. Fleissig

Adrian R. Fleissig

California State University, Fullerton - Department of Economics

Jack Strauss

University of Denver - Daniels College of Business

Abstract

Panel unit root tests are used to evaluate if real per capita GDP for OECD economies are trend or difference stationary. The panel approaches require that the series in the panel are independent, but evidence from the correlation matrix of the residuals indicates dependence. The panel unit root procedures are thus adjusted to allow for correlation in the data using different approaches. There is overwhelming evidence that the OECD data are trend stationary using bootstrap methods that accommodate more general forms of serial and cross correlation in the data compared to the standard approach of subtracting cross sectional means.

JEL Classification: C32, E32

Suggested Citation

Fleissig, Adrian R. and Strauss, Jack, Is OECD Real Per Capita GDP Trend or Difference Stationary?: Evidence from Panel Unit Root Tests. Available at SSRN: https://ssrn.com/abstract=160551

Adrian R. Fleissig (Contact Author)

California State University, Fullerton - Department of Economics ( email )

Fullerton, CA 92834
United States

Jack Strauss

University of Denver - Daniels College of Business ( email )

2101 S. University Blvd.
Denver, CO 80208
United States

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