Convergence across the United States: evidence from panel ESTAR unit root test

Lau, Chi Keung (2010) Convergence across the United States: evidence from panel ESTAR unit root test. International Advances in Economic Research, 16 (1). pp. 52-64. ISSN 1083-0898

Full text not available from this repository. (Request a copy)
Official URL: http://dx.doi.org/10.1007/s11294-009-9241-8

Abstract

Many empirical studies try to test whether there is income convergence across metropolitan areas in the continental United States. Drennan et al. (Journal of Economic Geography 4(5), 2004) claim that income among metropolitan economies is diverging for the period 1969–2001, after applying univariate unit root tests to the time series data. This paper brings new information to this area of study by using the nonlinear panel unit root test of the Exponential Smooth Auto-Regressive Augmented Dickey–Fuller (ESTAR-ADF) unit root test on the time series data for the period 1929–2005. Our results find evidence of stationarity for time series and thereby support beta and sigma convergence among states in a nonlinear setup. However, when the non-linear test encompasses cross section dependence as advocated by Cerrato et al. (2008), the evidence is attenuated.

Item Type: Article
Uncontrolled Keywords: United States income convergence, Nonlinear panel unitroottest, ESTAR, Cross section dependence, C10, F01, J10, O10, O40
Subjects: L100 Economics
Department: Faculties > Business and Law > Newcastle Business School > Business and Management
Depositing User: Chi Keung Lau
Date Deposited: 24 Sep 2013 09:27
Last Modified: 04 Dec 2015 13:10
URI: http://nrl.northumbria.ac.uk/id/eprint/13573

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics


Policies: NRL Policies | NRL University Deposit Policy | NRL Deposit Licence