This presentation is part of: E00-1 Topics in Macroeconomics

Unit root investigation with two breaks of Greek velocity

Erotokritos Varelas, Ph.D, Department of Economics, University of Macedonia,, 156 egnatia str, Thessaloniki, 54006, Greece

In the present article the time series of Greek velocity are investigated for the presence of a unit root and cycles , allowing for maximum two breaks which take place at an unknown point in time. This methodology is preferred to conventional Dickey & Fuller tests because the covered time horizon, namely from 1858 to 1938, is characterized by a number of very important events, the nature of which is either economic or historical. We use then the univariate spectral analysis to investigate the existens of cycles .(JEL: C12, C13, C22, C52).