F Versus T Tests For Unit Roots

نویسندگان
چکیده

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F versus t tests for unit roots

F tests which test jointly for a unit root and a zero intercept, and so compete against Dickey−Fuller t tests, are shown not to enhance power because they are invariant to the intercept value in the absence of a unit root. Monte Carlo results in the literature that indicate otherwise are shown to have resulted from the use of special starting values. Testing procedures that employ these F tests...

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ژورنال

عنوان ژورنال: SSRN Electronic Journal

سال: 2001

ISSN: 1556-5068

DOI: 10.2139/ssrn.258952