Is real per capita state personal income stationary? New nonlinear,asymmetric panel-data evidence |
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| Authors: | Furkan Emirmahmutoglu Rangan Gupta Stephen M Miller Tolga Omay |
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| Institution: | 1. Department of Econometrics, Ankara Haci Bayram Veli University, 06500 Besevler/Ankara, Turkey;2. Department of Economics, University of Pretoria, Pretoria, 0002 South Africa;3. Department of Economics, University of Nevada, Las Vegas, 89154-6005 United States;4. Department of Economics, Atilim University, 06830 K?z?lça?ar, Gölba?? Ankara, Turkey |
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| 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. |
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| Keywords: | asymmetry cross-sectional dependence nonlinear panel unit root sieve bootstrap C12 C15 C23 |
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