A simple proposal to improve the power of income convergence tests

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 138
Issue: C
Pages: 92-95

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

I make a simple proposal to replace trend stationarity with level stationarity as the alternative hypothesis in unit root tests for income convergence. This replacement improves the power of the tests and is supported by a clear and well known definition of convergence. A small Monte Carlo study and an empirical example illustrate this improvement.

Technical Details

RePEc Handle
repec:eee:ecolet:v:138:y:2016:i:c:p:92-95
Journal Field
General
Author Count
1
Added to Database
2026-01-29