The causality between energy consumption and economic growth has been an important issue in the economic literature. This paper studies the causal relationship between electricity consumption and economic growth in Mexico for the period of 1971-2011. In so doing, unit root and causality tests are applied. The results show that energy consumption and economic growth series are stationary and the...

This study examines whether the Taiwan’s public debt is sustainable utilizing an unrestricted two-regime threshold autoregressive (TAR) model with an autoregressive unit root. The empirical results show that Taiwan’s public debt appears as a nonlinear series and is stationary in regime 1 but not in regime 2. This result implies that while Taiwan’s public debt was mostly sustainable over the 199...

Local-to-unity and moderate-deviations specifications have been popular alternatives to unit root modeling. This article considers another kind of departures from a root, the form c v t / T β , where is random determines distance root. We classify stochastic into two types: local moderate. classification task completed by investigating asymptotic behavior tests that assume (STUR) processes as a...