Silva Lopes, Artur (2020): Revisiting income convergence with DFFourier tests: old evidence with a new test.

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Abstract
Motivated by the purpose to assess the income convergence hypothesis, a simple new Fouriertype unit root test of the DickeyFuller family is introduced and analysed. In spite of a few shortcomings that it shares with rival tests, the proposed test generally improves upon them in terms of power performance in small samples. The empirical results that it produces for a recent and updated sample of data for 25 countries clearly contrast with previous evidence produced by the Fourier approach and, more generally, they also contradict a recent wave of optimism concerning income convergence, as they are mostly unfavourable to it.
Item Type:  MPRA Paper 

Original Title:  Revisiting income convergence with DFFourier tests: old evidence with a new test 
English Title:  Revisiting income convergence with DFFourier tests: old evidence with a new test 
Language:  English 
Keywords:  income convergence; unit root tests; structural breaks 
Subjects:  C  Mathematical and Quantitative Methods > C2  Single Equation Models ; Single Variables > C22  TimeSeries Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes F  International Economics > F4  Macroeconomic Aspects of International Trade and Finance > F43  Economic Growth of Open Economies O  Economic Development, Innovation, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O47  Empirical Studies of Economic Growth ; Aggregate Productivity ; CrossCountry Output Convergence 
Item ID:  102208 
Depositing User:  Artur C. B. da Silva Lopes 
Date Deposited:  04 Aug 2020 20:42 
Last Modified:  04 Aug 2020 20:42 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/102208 