New test beats classics in predicting economic trends with nonlinear shifts.
The article introduces new tests to check if a random walk has a smooth nonlinear shift. These tests have better power than traditional unit root tests.
New study reveals key insights into trends and cycles in economic data.
Traditional Unit Root Tests Inaccurate for Trend and Cycle Models
Dickey-Fuller Test Reveals Surprising Impact of Trend Misspecification on Data.