Smooth Transitions and GDP Growth in the European Union

David Greenaway, Stephen Leybourne and David Sapsford

Manchester School, 2000, vol. 68, issue 2, 145-165

Abstract: In this paper we test whether GDP series in 12 European Union countries are integrated or are stationary around a deterministic component that may change gradually and smoothly between two regimes over time. We find that in two‐thirds of cases there appears to be a role for modelling with deterministic functions that allow smooth transitions, in some cases standing alone, in others in conjunction with additional integrated regressors. These findings constitute a challenge to traditional approaches to modelling breaking‐trend behaviour in GDP, which typically impose the condition that breaks, when present, must occur instantaneously.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/1467-9957.00187

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:manchs:v:68:y:2000:i:2:p:145-165

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1463-6786

Access Statistics for this article

Manchester School is currently edited by Keith Blackburn

More articles in Manchester School from University of Manchester Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().