Template-Type: ReDIF-Paper 1.0
Title: On the Robustness of Unit Root Tests in the Presence of Double Unit Roots
Author-Name: Niels Haldrup
Author-Name: Peter Lildholdt
Author-Email: nhaldrup@econ.au.dk 
Author-WorkPlace-Name: Department of Economics, University of Aarhus, Denmark
Author-WorkPlace-Postal: 8000 Aarhus C, Denmark
Author-WorkPlace-Fax: +45 86 13 63 34
Abstract: We examine some of the consequences on commonly used unit root tests when
the underlying series is integrated of order two. It turns out that standard augmented
Dickey-Fuller type of tests for a single unit root have excessive density in the explosive
region of the distribution. The lower (stationary) tail, however, will be virtually unaffected
in the presence of double unit roots. On the other hand, the Phillips-Perron test is shown
to diverge to plus infinity asymptotically and thus will favor the explosive alternative.
Numerical simulations are used to demonstrate the analytical results and some of the
implications in finite samples.
Classification-JEL: C12, C14, C22
Keywords: Unit root tests, Phillips-Perron test, I(1) versus I(2)
Length: 18
File-URL: ftp://ftp.econ.au.dk/afn/wp/00/wp00_1.pdf
File-Format: application/pdf
Handle: RePEc:aah:aarhec:2000-1







Template-Type: ReDIF-Paper 1.0
Title: Tracking functional devolution by states to panchayats.
Author-Name: Rajaraman, Indira
Author-Workplace-Name: National Institute of Public Finance and Policy
Author-Email: indira_raja@yahoo.com
Author-Name: Sinha, Darshy
Author-Workplace-Name: National Institute of Public Finance and Policy
Author-Email: darshy@nipfp.org.in
Note: Working Paper 48, 2007
Keywords: Function devolution ; Rural local bodies
Classification-JEL: H72
Abstract: The Eleventh Schedule added to the Constitution by the Seventy-third Amendment lists twenty-nine functions developable by States to Panchayati Raj Institutions (PRIs). States were free to set the speed and design of their approach to decentralization under the general framework of the Constitutional mandate. Fourteen years on, a quantitative measure is attempted in this paper of the extent to which functional transfers have been achieved through the budgetary transfer of funds, with respect to the fiscal year 2006-07, in four states: Madhya Pradesh, Chhattisgarh, Rajasthan and Orissa. The approach taken here is thus radically different from that in official documents, where functional transfer to PRIs is dealt with in a purely qualitative manner, based on administrative notifications. Without an associated budgetary provision these do not carry any operational significance.
Length: 50
Creation-Date: 2007-05
File-URL: http://www.nipfp.org.in/newweb/sites/default/files/wp_2007_48.pdf
File-Format: Application/pdf
Handle: RePEc:npf:wpaper:07/48