Testing the Prebish–Singer hypothesis using second-generation panel data stationarity tests with a break

Rabah Arezki, Kaddour Hadri (), Eiji Kurozumi () and Yao Rao ()

Economics Letters, 2012, vol. 117, issue 3, 814-816

Abstract: In this paper, we test the Prebish–Singer (PS) hypothesis, which states that real commodity prices decline in the long run, using two recent powerful panel data stationarity tests accounting for cross-sectional dependence and a structural break. We find that the hypothesis cannot be rejected for most commodities other than oil.

Keywords: Panel data; Stationarity tests; Cross-sectional dependence; Prebish–Singer hypothesis; Structural break (search for similar items in EconPapers)
JEL-codes: C12 C33 N50 O13 Q32 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:117:y:2012:i:3:p:814-816

DOI: 10.1016/j.econlet.2012.08.035

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