Abstract This paper attempts to re-investigate the catching-up (stochastic convergence) hypothesis among the selected 16 OECD countries applying the time series approach of convergence hypothesis with annual data over one century. To reach this aim, we propose a model which specifies a trend function, incorporating both types of structural breaks – that is, sharp breaks and smooth shifts usin...

abstract this paper attempts to re-investigate the catching-up (stochastic convergence) hypothesis among the selected 16 oecd countries applying the time series approach of convergence hypothesis with annual data over one century. to reach this aim, we propose a model which specifies a trend function, incorporating both types of structural breaks – that is, sharp breaks and smooth shifts using ...

The possibility that a series can contain an unknown number of smooth breaks raises two distinct problems. First, even if the breaks are sharp, the number of breaks and the break dates themselves are generally unknown and need to be estimated along with the other parameters of the model. Second, even if the number of breaks is known, the possibility of a smooth break means that the functional f...

We begin by studying certain semigroup estimates which are more singular than those implied by a Sobolev embedding theorem but which are equivalent to certain logarithmic Sobolev inequalities. We then give a method for proving that such log–Sobolev inequalities hold for Euclidean regions which satisfy a particular Hardy–type inequality. Our main application is to show that domains which have ex...

This paper proposes a new method for financial portfolio optimization based on reducing simultaneous asset shocks across collection of assets. may be understood as an alternative approach to risk reduction in mathematical quantity. First, we apply recently introduced semi-metrics between finite sets determine the distance time series’ structural breaks. Then, build classical theory Markowitz an...

This study explores the methods to de-trend smooth structural break processes while conducting unit root tests. The two most commonly applied approaches for modelling breaks namely transition and Fourier functions are considered. We perform a sequence of power comparisons among alternative tests that accommodate or sharp breaks. experiments demonstrate utilizing function lead unexpected results...