Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel-Data Evidence

28 Pages Posted: 28 Jun 2015

See all articles by Furkan Emirmahmutoglu

Furkan Emirmahmutoglu

Gazi University

Rangan Gupta

University of Pretoria - Department of Economics

Stephen M. Miller

University of Nevada, Las Vegas - Department of Economics; University of Connecticut - Department of Economics

Tolga Omay

Cankaya University

Date Written: June 26, 2015

Abstract

This paper re-examines the stochastic properties of US State real per capita personal income, using new panel unit-root procedures. The new developments incorporate non-linearity, asymmetry, and cross-sectional correlation within panel data estimation. Including nonlinearity and asymmetry finds that 43 states exhibit stationary real per capita personal income whereas including only nonlinearity produces the 42 states that exhibit stationarity. Stated differently, we find that 2 states exhibit nonstationary real per capita personal income when considering nonlinearity, asymmetry, and cross-sectional dependence.

Keywords: Nonlinear, Panel Unit Root, Asymmetry, Cross-Sectional Dependence, Sieve Bootstrap

JEL Classification: C12, C15, C23

Suggested Citation

Emirmahmutoglu, Furkan and Gupta, Rangan and Miller, Stephen M. and Omay, Tolga, Is Real Per Capita State Personal Income Stationary? New Nonlinear, Asymmetric Panel-Data Evidence (June 26, 2015). Available at SSRN: https://ssrn.com/abstract=2623726 or http://dx.doi.org/10.2139/ssrn.2623726

Furkan Emirmahmutoglu

Gazi University ( email )

Teknikokullar Ankara, 06500
Turkey

Rangan Gupta

University of Pretoria - Department of Economics ( email )

Lynnwood Road
Hillcrest
Pretoria, 0002
South Africa

Stephen M. Miller (Contact Author)

University of Nevada, Las Vegas - Department of Economics ( email )

4505 S. Maryland Parkway
Box 456005
Las Vegas, NV 89154
United States
702-895-3776 (Phone)
702-895-1354 (Fax)

HOME PAGE: http://faculty.unlv.edu/smiller/

University of Connecticut - Department of Economics

365 Fairfield Way, U-1063
Storrs, CT 06269-1063
United States

Tolga Omay

Cankaya University ( email )

Turkey

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