sharma-areshockstorealoutput-2009.pdf (460.3 kB)
Are shocks to real output permanent or transitory? Evidence from a panel of Pacific Island countries
journal contribution
posted on 2009-11-01, 00:00 authored by V Mishra, Susan SharmaSusan Sharma, R SmythPanel unit root and stationarity tests without structural breaks suggest that for eight Pacific island economies real gross domestic product (GDP) per capita contains a unit root. The panel stationarity test that accommodates structural change in the trend function, however, finds evidence in favour of regimewise trend stationarity. This result points to the importance of taking structural breaks into account. The finding implies that, for the period considered, the permanent secular component of output is dominated by transitory fluctuations accompanied by infrequent changes in the trend function. The only exceptions are Fiji and Kiribati, for which individual stationarity tests with multiple structural breaks suggest that real GDP per capita contains a unit root.
History
Journal
Pacific economic bulletinVolume
24Issue
1Pagination
65 - 82Publisher
Asia Pacific PressLocation
Canberra, A. C. T.ISSN
0817-8038eISSN
1834-9455Language
engNotes
Every reasonable effort has been made to ensure that permission has been obtained for items included in Deakin Research Online. If you believe that your rights have been infringed by this repository, please contact drosupport@deakin.edu.auPublication classification
C1.1 Refereed article in a scholarly journalCopyright notice
2009, The Australian National UniversityUsage metrics
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