Dummy variables and structural breaks

[AhmedSahlool]

Hi,

I think that the test of Bai Perron may not be the best guide for me to determine the number of breaks.

I tried to follow the economic development of the economy under study, adding a dummy variable for each variable "in each equation" to test the parameters instability, and correct it when necessary. Therefore, the dummy variables correct for different dates.

What do you think about this approach?

Thank you and best regards

Ahmed sahlool