Title
Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence
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
File Size
528 KB
Language
English
Repository Citation
Emirmahmutoglu, F.,
Gupta, R.,
Millter, S. M.,
Omay, T.
(2019).
Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel‐Data Evidence.
Bulletin of Economic Research
1-13.
Wiley.
http://dx.doi.org/10.1111/boer.12209