Abstract
An efficient treatment of practical issues on detecting multiple structural changes is presented. The efficacy of this method is examined by comparing the conventional hypothesis-testing method via comprehensive simulations and empirical applications. The method recommended is a model-selection using the Bayesian information criterion and allowing for heteroscedasticity. Empirical results show that the first structural change of Japanese economic growth occurred in 1974Q2, which was detected in 1979Q4, and that the second structural change occurred in 1992Q2, which was detected in 1998Q1. Two advantages of the model-selection method compared to the hypothesis-testing method are also discussed.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
