Logo
Munich Personal RePEc Archive

Most likely you go your way (and I'll go mine): non-convergent incomes with a new DF-Fourier test

Silva Lopes, Artur C. (2021): Most likely you go your way (and I'll go mine): non-convergent incomes with a new DF-Fourier test.

[thumbnail of MPRA_paper_107676.pdf]
Preview
PDF
MPRA_paper_107676.pdf

Download (190kB) | Preview

Abstract

Motivated by the purpose to assess the income convergence hypothesis, a simple new Fourier-type unit root test of the Dickey-Fuller 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.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.