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Modes, weighted modes, and calibrated modes: evidence of clustering using modality tests

Author

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  • Daniel J. Henderson

    (Department of Economics, State University of New York at Binghamton, Binghamton, NY, USA)

  • Christopher F. Parmeter

    (Department of Agricultural and Applied Economics, Virginia Polytechnic Institute and State University, Blacksburg, VA, USA)

  • R. Robert Russell

    (Department of Economics, University of California, Riverside, CA, USA)

Abstract

We apply recent results from the statistics literature to test for multimodality of worldwide distributions of several (unweighted and population-weighted) measures of labor productivity. Specifically, we employ Silverman (Bump) and Dip modality tests, calibrated to correct for their incorrect asymptotic levels. We show that test results are sensitive to the test statistic employed and to population weighting. But regardless of the statistical criterion used, multimodality is present throughout, or emerges during, our sample period (1960-2000). We also examine (a) movements of economies between modal clusters and (b) relationships between certain key development factors and multimodality of the productivity distribution. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Daniel J. Henderson & Christopher F. Parmeter & R. Robert Russell, 2008. "Modes, weighted modes, and calibrated modes: evidence of clustering using modality tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(5), pages 607-638.
    • Handle: RePEc:jae:japmet:v:23:y:2008:i:5:p:607-638
    DOI: 10.1002/jae.1023
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