| Abstract: | This paper demonstrates that the effects of the exogenous shocks experienced by the Philippine economy have been permanent rather than transitory. The finding emerges from the application of the Augmented Dickey-Fuller (ADF) model and the segmented trend model which confirm the presence of unit roots in several Philippine macroeconomic time series variables. Moreover, the use of the segmented trend model focuses some insights regarding the influence of the government's stabilization policies on the macroeconomic variables under investigation. |
