Document Type

Article

Publication Date

6-21-2019

Publication Title

Bulletin of Economic Research

Publisher

Wiley

First page number:

1

Last page number:

13

Abstract

This paper re‐examines the stochastic properties of U.S. state real per capita personal income, using new panel unit‐root procedures. The new developments incorporate non‐linearity, asymmetry, and cross‐sectional correlation within panel‐data estimation. Including nonlinearity and asymmetry finds that 43 states exhibit stationary real per capita personal income whereas including only nonlinearity produces 42 states that exhibit stationarity. Stated differently, we find that two states exhibit nonstationary real per capita personal income when considering nonlinearity, asymmetry, and cross‐sectional dependence.

Keywords

Asymmetry; Cross-Sectional dependence; Nonlinear; Panel unit root; Sieve bootstrap; C12; C15; C23

Disciplines

Econometrics | Income Distribution

File Format

pdf

File Size

528 KB

Language

English

Available for download on Monday, June 21, 2021

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