Abstract
We present a new method of testing for unit roots in the INAR(1) model based on estimated variances. We present detailed simulation evidence regarding the performance of the new test statistics that show that our method is more powerful than the Dickey–Fuller tests especially in nearly unit root circumstances. We evaluate the presence of a unit root in two empirical time series, namely, the number of schools for the blind, deaf, and the developmentally disabled people as well as the number of teachers in such schools. We find evidence of a unit root in either series.
Correction Statement
This article has been republished with minor changes. These changes do not impact the academic content of the article.
Acknowledgements
The authors would like to thank Editor in Chief and two referees for careful reading of the paper and a number of perceptive and beneficial comments which improved it greatly.