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Memorandum, Department of Economics, University of Oslo >
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http://hdl.handle.net/10419/63088
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| Title: | | With or without U? The appropriate test for a U shaped relationship  |
| 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
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| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
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