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Time series test of nonlinear convergence and transitional dynamics

This paper revisits the income convergence hypothesis by using the nonlinear unit root test of Kapetanios et al. [Kapetanios, G., Shin, Y. and A. Snell, 2003. Testing for a unit root in the nonlinear STAR framework. Journal of Econometrics 112, 359-379.]. Out of the 12 OECD income gaps in which nonlinearity has been detected, two cases of long-run converging and four cases of catching up are found.
Year of publication:
2008
Authors: Chong, Terence Tai-Leung ; Hinich, Melvin J. ; Liew, Venus Khim-Sen ; Lim, Kian-Ping
Published in:
Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 100.2008, 3, p. 337-339
Publisher: Elsevier
Type of publication: Article
Source:
Persistent link: https://www.econbiz.de/10005296692
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