With or Without U? The Appropriate Test for a U-Shaped Relationship

Journal article

Lind, Jo Thori & Halvor Mehlum (2010) With or Without U? The Appropriate Test for a U-Shaped Relationship, Oxford Bulletin of Economics and Statistics 72 (1): 109–118.

Download Final publication
.pdf

This is the Version of Record of the publication, available here in accordance with the publisher’s self-archiving policy. This version is free to view and download for private research and study only. This publication may be subject to copyright: please visit the publisher’s website for details. All rights reserved.

Download Reviewed, pre-typeset version
.pdf

This is the Reviewed, pre-typeset version of the article. The final, definitive version can be found at the journal’s website. This publication may be subject to copyright: please visit the publisher’s website for details. All rights reserved.

Read the article here

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.

An error has occurred. This application may no longer respond until reloaded. An unhandled exception has occurred. See browser dev tools for details. Reload 🗙