Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/63088
Authors: 
Lind, Jo Thori
Mehlum, Halvor
Year of Publication: 
2007
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 2007,21
Abstract: 
Non-linear relationships are common in economic theory, and such relationships are also frequently tested empirically. We argue that the usual test of non-linear relationships is flawed, and derive the appropriate test for a U shaped relationship. Our test gives the exact necessary and sufficient conditions for the test of a U shape in both finite samples and for a large class of models.
Subjects: 
U shape
hypothesis test
Kuznets curve
Fieller interval
JEL: 
C12
C20
Document Type: 
Working Paper

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