Kaufmann, Hendrik Kruse, Robinson Sibbertsen, Philipp
Year of Publication:
Diskussionspapiere der Wirtschaftswissenschaftlichen Fakultät, Universität Hannover 492
Linearity testing against smooth transition autoregressive (STAR) models when deterministic trends are potentially present in the data is considered in this paper. As opposed to recently reported results in Zhang (2012), we show that linearity tests against STAR models lead to useful results in this setting.