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Unit Root Tests of Canadian Poverty Measures

Author

Listed:
  • Baotai Wang

    (University of Northern British Columbia)

  • Ajit Dayanandan

    (University of Northern British Columbia)

Abstract

This note examines the non-stationarity property of a most widely used Canadian poverty measure, low income cut-off, for Canada and for each of its ten provinces using various unit root tests which started gaining popularity since the early 1980s. Most test results indicate that the Canadian poverty rates for the period of 1980 to 2003 are non-stationary. Therefore it is quite reasonable and appropriate to model the Canadian poverty rates as an I(1) process in the empirical studies on poverty issues in Canada.

Suggested Citation

  • Baotai Wang & Ajit Dayanandan, 2006. "Unit Root Tests of Canadian Poverty Measures," Economics Bulletin, AccessEcon, vol. 9(2), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-06i30003
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    File URL: http://www.accessecon.com/pubs/EB/2006/Volume9/EB-06I30003A.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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