EconPapers    
Economics at your fingertips  
 

Unit roots, flexible trends, and the Prebisch-Singer hypothesis

Diego Winkelried ()

Journal of Development Economics, 2018, vol. 132, issue C, 1-17

Abstract: This paper studies the dynamic properties of relative commodity prices, especially the Prebisch-Singer hypothesis on their secular decline, using a new family of unit root tests based on the Fourier approximation to the data's underlying trend. The approximation controls for low-frequency variations such as structural breaks or the long swings induced by hypothesized super cycles in the data. Regarding the extant literature, we find considerably more evidence against nonstationarity in relative commodity prices, and very limited support for the Prebisch-Singer hypothesis.

Keywords: Primary commodity prices; Unit roots; Long swings; Super cycles (search for similar items in EconPapers)
JEL-codes: C22 O13 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0304387817301062
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Unit Roots, Flexible Trends and the Prebisch-Singer Hypothesis (2015) Downloads
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:eee:deveco:v:132:y:2018:i:c:p:1-17

Access Statistics for this article

Journal of Development Economics is currently edited by M. R. Rosenzweig

More articles in Journal of Development Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2019-01-25
Handle: RePEc:eee:deveco:v:132:y:2018:i:c:p:1-17