Testing the assumption of Linearity
نویسنده
چکیده
The assumption of linearity is tested using five statistical tests for the US and the Canadian unemployment rates. An AR(p) model was used to remove any linear structure from the series. Strong evidence in favour of non−linearity was found in the case of Canada. The result for the US is not so clear cut. The author would like to thank Chung−Ming Kuan, David Chappell, Chris Martin and Costas Milas for their useful commnents. All remaining errors remain the responsibilty of the author. Citation: Panagiotidis, Theodore, (2002) "Testing the assumption of Linearity." Economics Bulletin, Vol. 3, No. 29 pp. 1−9 Submitted: October 29, 2002. Accepted: December 5, 2002. URL: http://www.economicsbulletin.com/2002/volume3/EB−02C20007A.pdf
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