4. An application to Hansen’s (2000) data setIn this section, we apply our approach to check whether or not the threshold is constant using the same data set as that considered by Hansen (2000) and Durlauf and Johnson (1995), in which they explore whether cross-section growth behavior is determined by initial conditions. For the details of the data description, one can refer to Hansen (2000). Hansen (2000) applies the threshold model to explore the hypothesis, while Durlauf and Johnson (1995) employ the regression tree methodology. However, the Hansen’s point estimates are quite similar to those of Durlauf and Johnson (1995).