With or Without U? - The appropriate test for a U shaped relationship
Jo Lind () and
Halvor Mehlum ()
MPRA Paper from University Library of Munich, Germany
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 (search for similar items in EconPapers)
JEL-codes: C12 C20 (search for similar items in EconPapers)
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Journal Article: With or Without U? The Appropriate Test for a U‐Shaped Relationship* (2010)
Working Paper: With or Without U? The appropriate test for a U shaped relationship (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:4823
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