Table 2. Stationarity testing.
Augmented Dickey-Fuller test (ADF) for a presence of unit root and KPSS test for stationarity are used. *, ** and *** stand for statistical significance at 10%, 5% and 1% levels, respectively. Number of lags for the tests is based on the Akaike Information Criterion (AIC) selection.
| Czech Rep. | Hungary | Poland | Slovakia | |
|---|---|---|---|---|
| ADF test | ||||
| Unemployment | -1.6066 | -1.78611 | -2.6739* | -2.6438* |
| - first difference | -5.3860*** | -4.5134*** | -3.5267*** | -4.2349*** |
| -0.6897 | -1.3974 | -2.1745 | -0.8000 | |
| - logarithm | -0.6931 | -1.1728 | -2.3280 | -0.3644 |
| - difference | -11.4213*** | -10.8293*** | -11.1560*** | -11.8463*** |
| - logarithmic difference | -11.5094*** | -10.9022*** | -11.0750*** | -11.7591*** |
| KPSS test | ||||
| Unemployment | 0.5399** | 2.5995*** | 1.7946*** | 0.7507*** |
| - first difference | 0.1932 | 0.2848 | 0.6708** | 0.5673** |
| 0.8294*** | 1.9059*** | 1.3281*** | 1.1640*** | |
| - logarithm | 0.8193*** | 1.9375*** | 1.3596*** | 1.1737*** |
| - difference | 0.0889 | 0.1580 | 0.1358 | 0.1122 |
| - logarithmic difference | 0.0977 | 0.1480 | 0.1362 | 0.0967 |