Lind, Jo Thori and Mehlum, Halvor (2007): With or Without U? - The appropriate test for a U shaped relationship.
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Non-linear relationships are common in economic theory, and such relationships are also frequently tested empirically. We argue that the usual test of non-linear relationships is flawed, and derive the appropriate test for a U shaped relationship. Our test gives the exact necessary and sufficient conditions for the test of a U shape in both finite samples and for a large class of models.
|Item Type:||MPRA Paper|
|Institution:||Department of Economics, University of Oslo|
|Original Title:||With or Without U? - The appropriate test for a U shaped relationship.|
|Keywords:||U shape; hypothesis test; Kuznets curve; Fieller interval|
|Subjects:||C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C12 - Hypothesis Testing: General
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C20 - General
|Depositing User:||Halvor Mehlum|
|Date Deposited:||12. Sep 2007|
|Last Modified:||11. Feb 2013 22:27|
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