Is There a Jump in the Transition?
- Authors
- Kim, Young-Joo; Seo, Myung Hwan
- Issue Date
- Apr-2017
- Publisher
- AMER STATISTICAL ASSOC
- Keywords
- Parameter on a boundary; Racial segregation; Smooth transition; Threshold regression; Tipping
- Citation
- JOURNAL OF BUSINESS & ECONOMIC STATISTICS, v.35, no.2, pp.241 - 249
- Journal Title
- JOURNAL OF BUSINESS & ECONOMIC STATISTICS
- Volume
- 35
- Number
- 2
- Start Page
- 241
- End Page
- 249
- URI
- https://scholarworks.bwise.kr/hongik/handle/2020.sw.hongik/5935
- DOI
- 10.1080/07350015.2016.1164055
- ISSN
- 0735-0015
- Abstract
- This article develops a statistical test for the presence of a jump in an otherwise smooth transition process. In this testing, the null model is a threshold regression and the alternative model is a smooth transition model. We propose a quasi-Gaussian likelihood ratio statistic and provide its asymptotic distribution, which is defined as the maximum of a two parameter Gaussian process with a nonzero bias term. Asymptotic critical values can be tabulated and depend on the transition function employed. A simulation method to compute empirical critical values is also developed. Finite-sample performance of the test is assessed via Monte Carlo simulations. The test is applied to investigate the dynamics of racial segregation within cities across the United States.
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Collections - School of Economics > Economics Major > 1. Journal Articles
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