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With or Without U? The Appropriate Test for a U-Shaped Relationship*: Practitionersâ Corner
Open accessAbstract
Nonlinear relationships are common in economic theory, and such relationships are also frequently tested empirically. We argue that the usual test of nonlinear 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 finite samples in a large class of models.
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Selden, T. M., & Song, D. (1994) · Journal of Environmental Economics and Management · doi:10.1006/jeem.1994.1031 · Cited by 2,850
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Rodrik, D. (2016) · Journal of Economic Growth · doi:10.1007/s10887-015-9122-3 · Cited by 2,236
Samargandi, N., Fidrmuc, J., & Ghosh, S. (2015) · World Development · doi:10.1016/j.worlddev.2014.11.010 · Cited by 647
Happiness, income satiation and turning points around the world
Jebb, A. T., Tay, L., Diener, E., & Oishi, S. (2018) · Nature Human Behaviour · doi:10.1038/s41562-017-0277-0 · Cited by 439
Financial development, real sector, and economic growth
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Metadata
- Authors
- Lind, J. T., & Mehlum, H.
- Venue
- Oxford Bulletin of Economics and Statistics
- Publisher
- Wiley
- Published
- 2010-02
- Volume
- 72
- Issue
- 1
- Pages
- 109-118
- ISSN
- 0305-9049 (ISSN-L)
- 1468-0084
- OpenAlex
- W1537892272
- Cited by
- 2,342
- References
- 2
- FWCI
- 14.21
- Type
- journal article
- Language
- en
- Open access
- bronze
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