Abstract
This paper studies the dynamic properties of relative commodity prices, especially the Prebisch-Singer hypothesis on their secular decline, using a new family of unit root tests based on the Fourier approximation to the data's underlying trend. The approximation controls for low-frequency variations such as structural breaks or the long swings induced by hypothesized super cycles in the data. Regarding the extant literature, we find considerably more evidence against nonstationarity in relative commodity prices, and very limited support for the Prebisch-Singer hypothesis.
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.
