S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, University of Oslo Memorandum

No 21/2007:
With or Without U? The appropriate test for a U shaped relationship

Jo Thori Lind () and Halvor Mehlum ()

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.

Keywords: U shape; hypothesis test; Kuznets curve; Fieller interval; (follow links to similar papers)

JEL-Codes: C12; C20; (follow links to similar papers)

14 pages, September 1, 2007

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

Memo-21-2007.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Magnus Gabriel Aase ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:osloec:2007_021 This page was generated on 2016-01-06 15:32:29