The assumption of linearity of factor models is implicit in all empirical applications used in macroeconomic analysis. We test this assumption in a more general setting than previously considered using a well-studied macroeconomic dataset on the U.S. economy, and find strong evidence in support...

The empirical finding of an inverse U-shaped relationship between per capita income and pollution, the so-called Environmental Kuznets Curve (EKC), suggests that as countries experience economic growth, environmental deterioration decelerates and thus becomes less of an issue. Focusing on the...

Over the last two centuries, the international financial system has experienced important financial shocks and important historical events have shaped financial markets and economies worldwide. We revisit financial integration across international markets during the period from 1870 to 2016 by...

Over the last two centuries, the international financial system has experienced important financial shocks and important historical events have shaped financial markets and economies worldwide. We revisit financial integration across international markets during the period from 1870 to 2016 by...

We explore the idea of regime switching as a new methodological approach in the analysis of the emission-income relationship. A static smooth transition regression model is developed with fixed-effects. The basic idea is that when some threshold is passed, then the economy could move smoothly to...