Analyzing Unemployment Rates Convergence across the US States: New Evidence Using Quantile Unit Root Test

This paper is to study the stochastic convergence toward cross-average across ۵۰ US states over the period from ۱۹۷۶–۲۰۱۸. To the end, we apply the quantile unit root test and several conventional linear and nonlinear unit root tests. While conventional unit root tests reject the stochastic convergence hypothesis for most of the states, we have found results in favor of stochastic convergence for ۴۱ out of ۵۰ states using the quantile unit root tests. In addition, our results indicated that the states exhibited different stochastic behaviors in various quantiles. In the states, which have had an unemployment rate less than cross-average in the boom period, negative shocks to the unemployment rate have had long-lasting effects, and shocks are divergent from the cross-average unemployment rate. But in a recessionary period of economics, positive shocks to the unemployment rate result in convergence toward cross-average, but have transitory effects and disappear in the short run

کلیدواژه ها:

quantile regression ، Stochastic Convergence ، Unit Root Tests ، US States