Testing the assumption of Linearity
The assumption of linearity is tested using five statistical tests for the US and the Canadian unemployment rates. An AR(p) model was used to remove any linear structure from the series. Strong evidence in favour of non-linearity was found in the case of Canada. The result for the US is not so clear cut.
Volume (Year): 3 (2002)
Issue (Month): 29 ()
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References listed on IDEAS
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- Koop, Gary & Potter, Simon M, 1999.
"Dynamic Asymmetries in U.S. Unemployment,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 17(3), pages 298-312, July.
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