Are income differences within the OECD diminishing? Evidence from Fourier unit root tests
King, Alan; Ramlogan-Dobson, Carlyn
Dr Carlyn Dobson Carlyn.Dobson@hull.ac.uk
Reader in Economics
We investigate the income convergence hypothesis for 24 OECD countries using Fourier-type unit root tests that can account for structural breaks of unknown number, timing and functional form in a series’ data generating process. Our results indicate that all 24 countries have followed a nonlinear underlying growth path (relative to the US) over the post-war era. These growth paths indicate that as many as half of the countries sampled are systematically catching-up with the US. Only a handful show evidence of being in relative decline, but the fact that this group includes several G7 economies is of concern.
|Journal Article Type||Article|
|Publication Date||Apr 1, 2014|
|Journal||Studies in Nonlinear Dynamics & Econometrics|
|Peer Reviewed||Peer Reviewed|
|APA6 Citation||King, A., & Ramlogan-Dobson, C. (2014). Are income differences within the OECD diminishing? Evidence from Fourier unit root tests. Studies in Nonlinear Dynamics and Econometrics, 18(2), 185–199. https://doi.org/10.1515/snde-2013-0008|
|Keywords||Fourier function; Income convergence; Nonlinear mean-reversion; Nonlinear trend|
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