Are US regional incomes converging? A nonlinear perspective
Résumé
This article deviates from the current practice of regional convergence by allowing output convergence to follow a non-linear process. In this scenario all standard linear unit root tests have low power, thus frequently leading to misguided conclusions. In light of this we adopt a unit root test based on a non-linear model which tests the null hypothesis of a unit root against a non-linear alternative. Our findings overwhelmingly support the tendency of US regions to converge over time.
Origine | Fichiers produits par l'(les) auteur(s) |
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