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Nonlinear Cointegration Analysis and the Environmental Kuznets Curve

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Table 1: Critical values c α M from P hR W 2 ≥ c αM i = Mα for α = 5% and 10% M 5% 10% M 5% 10% M 5% 10% Sum in (17) truncated at 30 2 2.135 1.656 15 3.588 3.076 28 4.034 3.538 3 2.421 1.934 16 3.635 3.121 29 4.058 3.563 4 2.627 2.135 17 3.680 3.164 30 4.0
Table 2: Mean and standard deviation of | ˆ β 1 − β 1 | OLS FM-OLS ρ 1 = 0.2 ρ 1 = 0.4 ρ 1 = 0.6 ρ 1 = 0.8 ρ 1 = 0.2 ρ 1 = 0.4 ρ 1 = 0.6 ρ 1 = 0.8 ρ 2 = 0.2 T= 50 0.119 0.167 0.330 1.045 0.162 0.207 0.369 1.165 (0.112) (0.153) (0.288) (0.904) (0.181) (0.20
Table 3: Mean and standard deviation of | ˆ β 2 − β 2 | OLS FM-OLS ρ 1 = 0.2 ρ 1 = 0.4 ρ 1 = 0.6 ρ 1 = 0.8 ρ 1 = 0.2 ρ 1 = 0.4 ρ 1 = 0.6 ρ 1 = 0.8 ρ 2 = 0.2 T= 50 0.020 0.027 0.050 0.143 0.024 0.031 0.053 0.146 (0.019) (0.025) (0.046) (0.132) (0.025) (0.03
Table 4: Empirical Rejection Probabilities of the LM Test when H 0 is True
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