New test detects economic shifts for stronger evidence of market trends.
The article introduces a new test to check if two variables are linked in the long term, even if there was a sudden change in their relationship. The test focuses on factors that can change on their own and compares different ways to estimate the results. It helps provide stronger evidence of a long-term connection between variables. The test works well even when the exact date of the change is unknown, and it can estimate this date accurately. The test's performance was confirmed through computer simulations.