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Are 19 Developed Countries' Real Per Capita GDP levels Non-stationary? A Revisit

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  • Shyh-Wei Chen

    (Department of Finance, Dayeh University)

Abstract

By using an extended dataset for 19 developed countries, this study employs a recent unit root test to re-examine the issue of the non-stationarity of real per capita GDP. The results convincingly support the view that the real per capita GDPs of Australia, France, Germany, Japan, the UK and the USA are characterized by a stationary process if the one-break unit root test is employed. Moreover, we can reject 11 of 19 countries' real per capita GDP if the two-break unit root test is employed. This is consistent with the view that business cycles exhibit stationary fluctuations around a deterministic trend.

Suggested Citation

  • Shyh-Wei Chen, 2008. "Are 19 Developed Countries' Real Per Capita GDP levels Non-stationary? A Revisit," Economics Bulletin, AccessEcon, vol. 3(2), pages 1-11.
    • Handle: RePEc:ebl:ecbull:eb-07c20156
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    References listed on IDEAS

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    2. Ivan Kitov, 2012. "Why price inflation in developed countries is systematically underestimated," Papers 1206.0450, arXiv.org.
    3. Yeboah Asuamah, Samuel, 2016. "Are output fluctuations transitory or permanent in Ghana?," MPRA Paper 70270, University Library of Munich, Germany.

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    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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