Abstract
The previous chapter outlined a number of tests for stationarity, but left some problems to be considered. The first issue parallels the problem with unit root tests, where the power of the tests was known to be sensitive to the initial condition. In the case of tests of stationarity, the roles are reversed so that the initial condition becomes important to the null hypothesis, with the problem now being that size is dependent on the initial condition. This problem is considered in section 12.1.
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