We investigate the nonlinear convergence of African economies as well as whether being stuck in a poverty trap. The former is explored by a modified KSS nonlinear unit root test in order to discriminate long-run converging from catching up, whereas the later is analyzed by both parametric and...

We develop a nonlinear state-space model that captures the joint dynamics of consumption, dividend growth, and asset returns. Our model consists of an economy containing a common predictable component for consumption and dividend growth and multiple stochastic volatility processes. The...

Since Lėon Walras neoclassical economists hold an inalterable belief in a unique and stable equilibrium for the economic system which however remains to this day unobservable. Yet that belief is the corner stone of other theories such as the "Efficient Market Hypothesis" as well as the...

Using non-linear methods, this paper finds that existing estimates of government spending multipliers in expansion and recession may yield biased results by ignoring whether government spending is increasing or decreasing. For industrial countries, the problem originates in the fact that,...

We find that incorporating nonlinearities into tests of asset price bubbles has important consequences for the results. We show this by comparing four tests using S&P 500 data. Our results indicate that the modification which incorporates nonlinear probabilities outperforms the other models in...

This paper provides out-of-sample forecasts of Nevada gross gaming revenue and taxable sales using a battery of linear and non-linear forecasting models and univariate and multivariate techniques. The linear models include vector autoregressive and vector error-correction models with and without...

O objetivo deste artigo é estimar as funções de capital humano dos estados brasileiros. As estimativas de uma função contínua, baseadas no modelo teórico apresentado, visam obter as taxas de retornos de cada nível de escolaridade, por sexo e individualizadas por estado. O modelo teórico...

Asymmetry has been well documented in the business cycle literature. The asymmetric business cycle suggests that major macroeconomic series, such as a country's unemployment rate, are non-linear and, therefore, the use of linear models to explain their behavior and forecast their future values...

This paper analyzed the non-linear ARDL approach and the non-linear Granger co-integration method. The gold price level showed positive asymmetric response to changes in the oil price in the short and long run. This study used the non-linear ARDL method to analyze the relationship between oil...