Nonlinear time-series convergence: The role of structural breaks
AbstractChong et al. (2008) found only limited support for the income convergence hypothesis among 15 OECD nations using a nonlinear unit root test. We find considerably greater evidence of convergence by allowing for breaks in the test's time trend.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 110 (2011)
Issue (Month): 3 (March)
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Web page: http://www.elsevier.com/locate/ecolet
Income convergence Nonlinear mean-reversion Structural breaks;
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