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Are US regional incomes converging? A nonlinear perspective

[journal article]

Christopoulos, Dimitris; Tsionas, Mike

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Abstract This article deviates from the current practice of regional convergence by allowing output convergence to follow a non-linear process. In this scenario all standard linear unit root tests have low power, thus frequently leading to misguided conclusions. In light of this we adopt a unit root test based on a non-linear model which tests the null hypothesis of a unit root against a non-linear alternative. Our findings overwhelmingly support the tendency of US regions to converge over time.
Classification Area Development Planning, Regional Research
Publication Year 2007
Page/Pages p. 525-530
Journal Regional Studies, 41 (2007) 4
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)