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Title:With or without U? The appropriate test for a U shaped relationship PDF Logo
Authors:Lind, Jo Thori
Mehlum, Halvor
Issue Date: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
Appears in Collections:Memorandum, Department of Economics, University of Oslo

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