Influence of Structural Break on the Power of ADF Unit Root Test

With the changes in economic structure and social development, paths of most variables show characteristics structural changes. Traditional unit root tests, such as ADF PP often lead to wrong conclusions about data stationarity when considering variation factors. This paper considers test power statistic with one break using Monte Carlo simulation generating process has double breaks both intercept slope. The results that there is a if conventional performing without this break, still efficient degree relatively low. Furthermore, discusses influence size sample, position on under premise low degree.