A Research on Sectorial Inflation Persistence in China ——Based on Panel SURKSS Test with a Fourier Function
[an error occurred while processing this directive]
Abstract Although panel SURADF test takes into account the cross-sectional heterogeneity and dependence, it is not applicable when variables have nonlinear trends. This paper employs panel SURKSS test with a Fourier function to investigate Chinese aggregate and sectorial inflation persistence. The empirical results suggest that all the sectorial inflation rates are mean reverting processes, which will deviate from their long-term equilibrium levels temporarily. There exist some differences in the dynamics of sectorial inflation rates. Compared with the conventional unit root tests, SURKSS is superior in identifying the structural characteristics of sectorial inflation.
LIU Zhi-Jie,TAN Xiao-Yu. A Research on Sectorial Inflation Persistence in China ——Based on Panel SURKSS Test with a Fourier Function. Economic Survey, 2016, 33(5): 0126.
2016, Vol. 33 
[an error occurred while processing this directive] | [an error occurred while processing this directive]
