Persistence of the Misery Index in African Countries

Abstract

This paper deals with the analysis of the misery index in a group of 55 African countries by using fractional integration or I(d) techniques. In doing so, we can measure the degree of persistence of the index in a more fexible way than with other methods that simply use integer degrees of diferentiation (zero or one). Our results indicate a large degree of heterogeneity across the countries, with some showing short memory behaviour (d=0); others long memory mean reverting behaviour (0<d<1) and others indicating the presence of unit roots (d=1). Thus, shocks will have diferent efects depending on the country examined. Generally, we also fnd a positive relationship between the levels of persistence and income.