Modelling Inflation Uncertainty with Structural Breaks Case of Turkey (1994–2013)

Table 2

ADF unit root tests result for inflation.

Method	Model	Null hypothesis	Alternative hypothesis	Test statistics; ( value)	Critical value
ADF	None			−2.193745 (0.0275)	−1.942236
	Intercept			−1.871395 (0.3454)	−2.874143
	Trend and intercept			−7.911212 (0.0000)	−3.429834
PP	None			−4.584029 (0.0000)	−1.942164
	Intercept			−5.756209 (0.0000)	−2.873492
	Trend and intercept			−9.830728 (0.0000)	−3.428819
KPSS	Intercept	Stationary	Nonstationary	2.011927	0.463000
	Trend and intercept	Stationary	Nonstationary	0.458681	0.146000

The one-sided critical value for ADF and PP were taken from [83].
The critical values for KPSS test were obtained from Table 1 in [45].