ABSTRACT
We test for convergence in disaggregated petroleum consumption at the sector level for the United States using the recently proposed GARCH unit root test, suitable for high frequency data. We find evidence of convergence for just over half of the series, including total petroleum consumption in each sector and approximately three quarters of the disaggregated petroleum consumption series in transportation.
Acknowledgement
We thank Paresh Narayan for providing the GAUSS codes for the Narayan and Popp (2010) and Narayan, Liu, and Westerlund (2015) tests.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1 Other applications, the Narayan, Liu, and Westerlund (Citation2015) working paper, are to commodity and financial prices – Narayan and Liu (Citation2011) (commodity prices), Salisu and Fasanya (Citation2013) (oil prices), Salisu and Mobolaji (Citation2013) (exchange rates and oil prices), Lean and Smyth (Citation2015) (palm oil spot and futures prices) and Lean, Mishra, and Smyth (Citation2015) and Mishra, Mishra, and Smyth (Citation2015) (stock prices). Note that each of these studies apply earlier circulated versions of Narayan, Liu, and Westerlund (Citation2015). Specifically, they apply either Narayan and Liu (Citation2011) or a 2013 working paper in which Narayan and Liu were the only co-authors. (Westerlund only joined as a co-author in the latest version of the working paper).
2 Figures are as a proportion of delivered energy (excluding electricity-related losses).
3 There are a large number of studies that have applied the Narayan and Popp (Citation2010) test. A Google Scholar cited reference search suggests that as of November 2015, it has 104 citations. Applications in energy economics include Apergis and Payne (Citation2010), Lean and Smyth (Citation2015), Mishra and Smyth (Citation2014a, Citation2014b) and Narayan and Liu (Citation2011).
4 For details on the sequential procedure approach, refer to Narayan and Popp (Citation2010).
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