More Sophisticated Model
If there are too many unknown breaks, then just assume the parameter to be time varying.
The latest method has been used by Bai and Perron (2003) in which multiple structural breaks can be automatically detected from data. The literature in this regard is very vast starting right from 1987 to 2010. Recently economists are going for both growth rate analysis and also econometric analysis in order to find break points one such way has been recommended by Chandan Mukherjee (2009).
Read more about this topic: Structural Break
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