Grounded on the concept of cointegration, this paper develops a novel test of time series convergence between pairs of unit root processes. The test (i) does not require the estimation of the cointegration coeffcient, (ii) is robust to general forms of weak dependence in the transitory...

This paper proposes a network regression model to account for peer contextual effects on the outcome variable. In contrast to the literature, we estimate the interaction matrix that defines the network structure. Spill-over effects are modelled as a functional coefficient that is approximated...