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Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel-Data Evidence

Author

Listed:
  • Furkan Emirmahmutoglu

    (Gazi University)

  • Rangan Gupta

    (University of Pretoria)

  • Stephen M. Miller

    (University of Nevada, Las Vegas and University of Connecticut)

  • Tolga Omay

    (Çankaya University)

Abstract

This paper re-examines the stochastic properties of US State real per capita personal income, using new panel unit-root procedures. The new developments incorporate non-linearity, asymmetry, and cross-sectional correlation within panel data estimation. Including nonlinearity and asymmetry finds that 43 states exhibit stationary real per capita personal income whereas including only nonlinearity produces the 42 states that exhibit stationarity. Stated differently, we find that 2 states exhibit nonstationary real per capita personal income when considering nonlinearity, asymmetry, and cross-sectional dependence.

Suggested Citation

  • Furkan Emirmahmutoglu & Rangan Gupta & Stephen M. Miller & Tolga Omay, 2015. "Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel-Data Evidence," Working papers 2015-02, University of Connecticut, Department of Economics.
    • Handle: RePEc:uct:uconnp:2015-02
    Note: Stephen Miller is the corresponding author
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    References listed on IDEAS

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    1. Mirza, Nawazish & Rahat, Birjees & Naqvi, Bushra & Rizvi, Syed Kumail Abbas, 2023. "Impact of Covid-19 on corporate solvency and possible policy responses in the EU," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 181-190.
    2. Furkan Emirmahmutoglu & Tolga Omay & Syed Jawad Hussain Shahzad & Safwan Mohd Nor, 2021. "Smooth Break Detection and De-Trending in Unit Root Testing," Mathematics, MDPI, vol. 9(4), pages 1-25, February.
    3. Zhao, Xing & Guo, Yifan & Feng, Tianchu, 2023. "Towards green recovery: Natural resources utilization efficiency under the impact of environmental information disclosure," Resources Policy, Elsevier, vol. 83(C).
    4. Zhang, Yonggang & Dilanchiev, Azer, 2022. "Economic recovery, industrial structure and natural resource utilization efficiency in China: Effect on green economic recovery," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    Nonlinear; Panel Unit Root; Asymmetry; Cross-Sectional Dependence; Sieve Bootstrap;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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