diff --git a/quantecon/game_theory/game_generators/tests/test_bimatrix_generators.py b/quantecon/game_theory/game_generators/tests/test_bimatrix_generators.py
index 9e048f6ba..33734ccaa 100644
--- a/quantecon/game_theory/game_generators/tests/test_bimatrix_generators.py
+++ b/quantecon/game_theory/game_generators/tests/test_bimatrix_generators.py
@@ -14,7 +14,7 @@
 
 
 class TestBlottoGame:
-    def setup(self):
+    def setup_method(self):
         self.h, self.t = 4, 3
         rho = 0.5
         self.g = blotto_game(self.h, self.t, rho)
@@ -38,7 +38,7 @@ def test_seed(self):
 
 
 class TestRankingGame:
-    def setup(self):
+    def setup_method(self):
         self.n = 100
         self.g = ranking_game(self.n)
 
@@ -85,7 +85,7 @@ def test_sgc_game():
 
 
 class TestTournamentGame:
-    def setup(self):
+    def setup_method(self):
         self.n = 5
         self.k = 3
         self.m = comb(self.n, self.k, exact=True)
@@ -116,7 +116,7 @@ def test_raises_value_error_too_large_inputs(self):
 
 
 class TestUnitVectorGame:
-    def setup(self):
+    def setup_method(self):
         self.n = 100
         self.g = unit_vector_game(self.n)
 
diff --git a/quantecon/game_theory/tests/test_lemke_howson.py b/quantecon/game_theory/tests/test_lemke_howson.py
index ed58c8c58..ba6d16660 100644
--- a/quantecon/game_theory/tests/test_lemke_howson.py
+++ b/quantecon/game_theory/tests/test_lemke_howson.py
@@ -7,7 +7,7 @@
 
 
 class TestLemkeHowson():
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # From von Stengel 2007 in Algorithmic Game Theory
@@ -30,7 +30,7 @@ def test_lemke_howson(self):
 
 
 class TestLemkeHowsonDegenerate():
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # From von Stengel 2007 in Algorithmic Game Theory
diff --git a/quantecon/game_theory/tests/test_mclennan_tourky.py b/quantecon/game_theory/tests/test_mclennan_tourky.py
index 49b830034..329b3ed7d 100644
--- a/quantecon/game_theory/tests/test_mclennan_tourky.py
+++ b/quantecon/game_theory/tests/test_mclennan_tourky.py
@@ -10,7 +10,7 @@
 
 
 class TestMclennanTourky():
-    def setup(self):
+    def setup_method(self):
         def anti_coordination(N, v):
             payoff_array = np.empty((2,)*N)
             payoff_array[0, :] = 1
@@ -56,7 +56,7 @@ def test_pure_nash(self):
 
 
 class TestMclennanTourkyInvalidInputs():
-    def setup(self):
+    def setup_method(self):
             self.bimatrix = [[(3, 3), (3, 2)],
                              [(2, 2), (5, 6)],
                              [(0, 3), (6, 1)]]
@@ -73,7 +73,7 @@ def test_mclennan_tourky_invalid_init_length(self):
 
 
 class TestEpsilonNash():
-    def setup(self):
+    def setup_method(self):
         def anti_coordination(N, v):
             payoff_array = np.empty((2,)*N)
             payoff_array[0, :] = 1
diff --git a/quantecon/game_theory/tests/test_normal_form_game.py b/quantecon/game_theory/tests/test_normal_form_game.py
index 622099d4d..74c6af867 100644
--- a/quantecon/game_theory/tests/test_normal_form_game.py
+++ b/quantecon/game_theory/tests/test_normal_form_game.py
@@ -17,7 +17,7 @@
 class TestPlayer_1opponent:
     """Test the methods of Player with one opponent player"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a Player instance"""
         coordination_game_matrix = [[4, 0], [3, 2]]
         self.player = Player(coordination_game_matrix)
@@ -89,7 +89,7 @@ def test_dominated_actions(self):
 class TestPlayer_2opponents:
     """Test the methods of Player with two opponent players"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a Player instance"""
         payoffs_2opponents = [[[3, 6],
                                [4, 2]],
@@ -176,7 +176,7 @@ def test_player_corner_cases():
 class TestNormalFormGame_Sym2p:
     """Test the methods of NormalFormGame with symmetric two players"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a NormalFormGame instance"""
         coordination_game_matrix = [[4, 0], [3, 2]]
         self.g = NormalFormGame(coordination_game_matrix)
@@ -194,7 +194,7 @@ def test_is_nash_mixed(self):
 class TestNormalFormGame_Asym2p:
     """Test the methods of NormalFormGame with asymmetric two players"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a NormalFormGame instance"""
         self.BoS_bimatrix = np.array([[(3, 2), (1, 1)],
                                       [(0, 0), (2, 3)]])
@@ -234,7 +234,7 @@ def test_payoff_arrays(self):
 class TestNormalFormGame_3p:
     """Test the methods of NormalFormGame with three players"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a NormalFormGame instance"""
         payoffs_2opponents = [[[3, 6],
                                [4, 2]],
@@ -341,7 +341,7 @@ def test_normalformgame_payoff_profile_array_c_contiguous():
 class TestPlayer_0opponents:
     """Test for trivial Player with no opponent player"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a Player instance"""
         self.payoffs = [0, 1, -1]
         self.player = Player(self.payoffs)
@@ -386,7 +386,7 @@ def test_dominated_actions(self):
 class TestNormalFormGame_1p:
     """Test for trivial NormalFormGame with a single player"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup a NormalFormGame instance"""
         data = [[0], [1], [1]]
         self.g = NormalFormGame(data)
@@ -444,7 +444,7 @@ def test_normalformgame_setitem_1p():
 # Trivial cases with one action #
 
 class TestPlayer_1action:
-    def setup(self):
+    def setup_method(self):
         """Setup a Player instance"""
         self.payoffs = [[0, 1]]
         self.player = Player(self.payoffs)
diff --git a/quantecon/game_theory/tests/test_pure_nash.py b/quantecon/game_theory/tests/test_pure_nash.py
index 4c3ac8b36..bdb5a231b 100644
--- a/quantecon/game_theory/tests/test_pure_nash.py
+++ b/quantecon/game_theory/tests/test_pure_nash.py
@@ -10,7 +10,7 @@
 
 
 class TestPureNashBruteForce():
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # Matching Pennies game with no pure nash equilibrium
diff --git a/quantecon/game_theory/tests/test_repeated_game.py b/quantecon/game_theory/tests/test_repeated_game.py
index 4f1cb3337..c732aa976 100644
--- a/quantecon/game_theory/tests/test_repeated_game.py
+++ b/quantecon/game_theory/tests/test_repeated_game.py
@@ -8,7 +8,7 @@
 
 
 class TestAS():
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # Example from Abreu and Sannikov (2014)
diff --git a/quantecon/game_theory/tests/test_support_enumeration.py b/quantecon/game_theory/tests/test_support_enumeration.py
index fe72ef80d..aa22aff83 100644
--- a/quantecon/game_theory/tests/test_support_enumeration.py
+++ b/quantecon/game_theory/tests/test_support_enumeration.py
@@ -29,7 +29,7 @@ def random_skew_sym(n, m=None, random_state=None):
 
 
 class TestSupportEnumeration():
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # From von Stengel 2007 in Algorithmic Game Theory
diff --git a/quantecon/game_theory/tests/test_vertex_enumeration.py b/quantecon/game_theory/tests/test_vertex_enumeration.py
index 51dc8dfad..1f8cbabfb 100644
--- a/quantecon/game_theory/tests/test_vertex_enumeration.py
+++ b/quantecon/game_theory/tests/test_vertex_enumeration.py
@@ -10,7 +10,7 @@
 
 
 class TestVertexEnumeration:
-    def setup(self):
+    def setup_method(self):
         self.game_dicts = []
 
         # From von Stengel 2007 in Algorithmic Game Theory
@@ -71,7 +71,7 @@ def test_vertex_enumeration_invalid_g():
 
 
 class TestBestResponsePolytope:
-    def setup(self):
+    def setup_method(self):
         # From von Stengel 2007 in Algorithmic Game Theory
         bimatrix = [[(3, 3), (3, 2)],
                     [(2, 2), (5, 6)],
diff --git a/quantecon/markov/tests/test_approximation.py b/quantecon/markov/tests/test_approximation.py
index f97aa4809..b1d33d4f6 100644
--- a/quantecon/markov/tests/test_approximation.py
+++ b/quantecon/markov/tests/test_approximation.py
@@ -11,7 +11,7 @@
 
 class TestTauchen:
 
-    def setup(self):
+    def setup_method(self):
         self.rho, self.sigma_u = np.random.rand(2)
         self.n = np.random.randint(3, 25)
         self.m = np.random.randint(5)
@@ -54,7 +54,7 @@ def test_states_sum_0(self):
 
 class TestRouwenhorst:
 
-    def setup(self):
+    def setup_method(self):
         self.rho, self.sigma = np.random.uniform(0, 1, size=2)
         self.n = np.random.randint(3, 26)
         self.ybar = np.random.randint(0, 11)
diff --git a/quantecon/markov/tests/test_core.py b/quantecon/markov/tests/test_core.py
index 926f879af..80fb756ba 100644
--- a/quantecon/markov/tests/test_core.py
+++ b/quantecon/markov/tests/test_core.py
@@ -191,7 +191,7 @@ class Test_markovchain_stationary_distributions_KMRMarkovMatrix2():
     p = 1/3
     TOL = 1e-2
 
-    def setup(self):
+    def setup_method(self):
         """ Setup a KMRMarkovMatrix and Compute Stationary Values """
         self.P = KMR_Markov_matrix_sequential(self.N, self.p, self.epsilon)
         self.mc = MarkovChain(self.P)
@@ -409,7 +409,7 @@ def test_mc_sample_path_lln():
 
 
 class TestMCStateValues:
-    def setup(self):
+    def setup_method(self):
         state_values = [[0, 1], [2, 3], [4, 5]]  # Pass python list
         self.state_values = np.array(state_values)
 
diff --git a/quantecon/markov/tests/test_ddp.py b/quantecon/markov/tests/test_ddp.py
index 51fbb851b..95cd7b848 100644
--- a/quantecon/markov/tests/test_ddp.py
+++ b/quantecon/markov/tests/test_ddp.py
@@ -11,7 +11,7 @@
 
 
 class TestDiscreteDP:
-    def setup(self):
+    def setup_method(self):
         # From Puterman 2005, Section 3.1
         beta = 0.95
 
@@ -194,7 +194,7 @@ def test_ddp_sorting():
 
 
 class TestFiniteHorizon:
-    def setup(self):
+    def setup_method(self):
         # From Puterman 2005, Section 3.2, Section 4.6.1
         # "single-product stochastic inventory control"
         s_indices = [0, 0, 0, 0, 1, 1, 1, 2, 2, 3]
diff --git a/quantecon/markov/tests/test_random.py b/quantecon/markov/tests/test_random.py
index 3d3a439d4..9f31b3517 100644
--- a/quantecon/markov/tests/test_random.py
+++ b/quantecon/markov/tests/test_random.py
@@ -89,7 +89,7 @@ def test_random_stochastic_matrix_k_1():
 
 
 class TestRandomDiscreteDP:
-    def setup(self):
+    def setup_method(self):
         self.num_states, self.num_actions = 5, 4
         self.num_sa = self.num_states * self.num_actions
         self.k = 3
diff --git a/quantecon/random/tests/test_utilities.py b/quantecon/random/tests/test_utilities.py
index 6649f5fba..16ddece0f 100644
--- a/quantecon/random/tests/test_utilities.py
+++ b/quantecon/random/tests/test_utilities.py
@@ -17,7 +17,7 @@
 # probvec #
 
 class TestProbvec:
-    def setup(self):
+    def setup_method(self):
         self.m, self.k = 2, 3  # m vectors of dimension k
         seed = 1234
 
@@ -68,7 +68,7 @@ def test_sample_without_replacement_value_error():
 # draw #
 
 class TestDraw:
-    def setup(self):
+    def setup_method(self):
         self.pmf = np.array([0.4, 0.1, 0.5])
         self.cdf = np.cumsum(self.pmf)
         self.n = len(self.pmf)
diff --git a/quantecon/tests/test_arma.py b/quantecon/tests/test_arma.py
index dfe7c3cbd..51183e948 100644
--- a/quantecon/tests/test_arma.py
+++ b/quantecon/tests/test_arma.py
@@ -9,7 +9,7 @@
 
 
 class TestARMA():
-    def setup(self):
+    def setup_method(self):
         # Initial Values
         phi = np.array([.95, -.4, -.4])
         theta = np.zeros(3)
diff --git a/quantecon/tests/test_compute_fp.py b/quantecon/tests/test_compute_fp.py
index 94315ad0c..d48325e9a 100644
--- a/quantecon/tests/test_compute_fp.py
+++ b/quantecon/tests/test_compute_fp.py
@@ -17,7 +17,7 @@
 class TestFPLogisticEquation():
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.mu_1 = 0.2  # 0 is unique fixed point forall x_0 \in [0, 1]
 
         # (4mu - 1)/(4mu) is a fixed point forall x_0 \in [0, 1]
@@ -87,7 +87,7 @@ def test_imitation_game_method(self):
 
 
 class TestComputeFPContraction():
-    def setup(self):
+    def setup_method(self):
         self.coeff = 0.5
         self.methods = ['iteration', 'imitation_game']
 
diff --git a/quantecon/tests/test_discrete_rv.py b/quantecon/tests/test_discrete_rv.py
index 80d44f0d2..050dc9edb 100644
--- a/quantecon/tests/test_discrete_rv.py
+++ b/quantecon/tests/test_discrete_rv.py
@@ -12,7 +12,7 @@
 class TestDiscreteRV:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         x = np.random.rand(10)
         x /= x.sum()
         # make sure it sums to 1
diff --git a/quantecon/tests/test_distributions.py b/quantecon/tests/test_distributions.py
index bd8a91c51..ecd3711e7 100644
--- a/quantecon/tests/test_distributions.py
+++ b/quantecon/tests/test_distributions.py
@@ -9,7 +9,7 @@
 
 
 class TestBetaBinomial:
-    def setup(self):
+    def setup_method(self):
         self.n = 100
         self.a = 5
         self.b = 5
diff --git a/quantecon/tests/test_dle.py b/quantecon/tests/test_dle.py
index 29f2553ae..f24ccb963 100644
--- a/quantecon/tests/test_dle.py
+++ b/quantecon/tests/test_dle.py
@@ -11,7 +11,7 @@
 
 class TestDLE:
 
-    def setup(self):
+    def setup_method(self):
         """
         Given LQ control is tested we will test the transformation
         to alter the problem into a form suitable to solve using LQ
diff --git a/quantecon/tests/test_ecdf.py b/quantecon/tests/test_ecdf.py
index 6dae10a1d..05eb39c3c 100644
--- a/quantecon/tests/test_ecdf.py
+++ b/quantecon/tests/test_ecdf.py
@@ -10,7 +10,7 @@
 class TestECDF:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.obs = np.random.rand(40)  # observations defining dist
         cls.ecdf = ECDF(cls.obs)
 
diff --git a/quantecon/tests/test_estspec.py b/quantecon/tests/test_estspec.py
index 8dbfe5da5..5a5553187 100644
--- a/quantecon/tests/test_estspec.py
+++ b/quantecon/tests/test_estspec.py
@@ -19,7 +19,7 @@
 class PeriodogramBase:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         if cls is PeriodogramBase:
             raise pytest.skip("Skip PeriodogramBase tests" +
                                     " it's a base class")
@@ -47,10 +47,10 @@ def test_func_I(self):
 class TestPeriodogram(PeriodogramBase):
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         if cls is PeriodogramBase:
             raise pytest.skip("Skip BaseTest tests, it's a base class")
-        super(TestPeriodogram, cls).setup()
+        super(TestPeriodogram, cls).setup_method()
         cls.window_length = 7
         cls.w_20, cls.Iw_20 = periodogram(x_20)
         cls.w_21, cls.Iw_21 = periodogram(x_21)
@@ -60,10 +60,10 @@ def setup(cls):
 class TestArPeriodogram(PeriodogramBase):
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         if cls is PeriodogramBase:
             raise pytest.skip("Skip BaseTest tests, it's a base class")
-        super(TestArPeriodogram, cls).setup()
+        super(TestArPeriodogram, cls).setup_method()
         cls.window_length = 7
         cls.w_20, cls.Iw_20 = ar_periodogram(x_20)
         cls.w_21, cls.Iw_21 = ar_periodogram(x_21)
@@ -81,7 +81,7 @@ def test_func_Iw_shape_even_x(self):
 class TestSmooth:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_20 = np.random.rand(20)
         cls.x_21 = np.random.rand(21)
         cls.window_length = 7
diff --git a/quantecon/tests/test_graph_tools.py b/quantecon/tests/test_graph_tools.py
index 26ea525ef..5c05a0917 100644
--- a/quantecon/tests/test_graph_tools.py
+++ b/quantecon/tests/test_graph_tools.py
@@ -128,7 +128,7 @@ def __init__(self):
 class TestDiGraph:
     """Test the methods in Digraph"""
 
-    def setup(self):
+    def setup_method(self):
         """Setup Digraph instances"""
         self.graphs = Graphs()
         for graph_dict in self.graphs.graph_dicts:
@@ -295,7 +295,7 @@ def test_raises_non_homogeneous_node_labels():
 
 
 class TestRandomTournamentGraph:
-    def setup(self):
+    def setup_method(self):
         n = 5
         g = random_tournament_graph(n)
         self.adj_matrix = g.csgraph.toarray()
diff --git a/quantecon/tests/test_gridtools.py b/quantecon/tests/test_gridtools.py
index 553b92744..89c62cd52 100644
--- a/quantecon/tests/test_gridtools.py
+++ b/quantecon/tests/test_gridtools.py
@@ -153,7 +153,7 @@ def test_repeat():
 
 
 class TestSimplexGrid:
-    def setup(self):
+    def setup_method(self):
         self.simplex_grid_3_4 = np.array([[0, 0, 4],
                                           [0, 1, 3],
                                           [0, 2, 2],
diff --git a/quantecon/tests/test_kalman.py b/quantecon/tests/test_kalman.py
index 605ef05e3..1a2cd84c8 100644
--- a/quantecon/tests/test_kalman.py
+++ b/quantecon/tests/test_kalman.py
@@ -10,7 +10,7 @@
 
 class TestKalman:
 
-    def setup(self):
+    def setup_method(self):
         # Initial Values
         self.A = np.array([[.95, 0], [0., .95]])
         self.C = np.eye(2) * np.sqrt(0.5)
diff --git a/quantecon/tests/test_lqcontrol.py b/quantecon/tests/test_lqcontrol.py
index 12b2a6dc0..1486f55c8 100644
--- a/quantecon/tests/test_lqcontrol.py
+++ b/quantecon/tests/test_lqcontrol.py
@@ -10,7 +10,7 @@
 
 class TestLQControl:
 
-    def setup(self):
+    def setup_method(self):
         # Initial Values
         q = 1.
         r = 1.
@@ -91,7 +91,7 @@ def test_stationary_mat(self):
 
 class TestLQMarkov:
 
-    def setup(self):
+    def setup_method(self):
 
         # Markov chain transition matrix
         Π = np.array([[0.8, 0.2],
diff --git a/quantecon/tests/test_lss.py b/quantecon/tests/test_lss.py
index 7d4d2106f..d1a4909d0 100644
--- a/quantecon/tests/test_lss.py
+++ b/quantecon/tests/test_lss.py
@@ -9,7 +9,7 @@
 
 class TestLinearStateSpace:
 
-    def setup(self):
+    def setup_method(self):
         # Example 1
         A = .95
         C = .05
diff --git a/quantecon/tests/test_quad.py b/quantecon/tests/test_quad.py
index f78641f98..9b12f7d83 100644
--- a/quantecon/tests/test_quad.py
+++ b/quantecon/tests/test_quad.py
@@ -87,7 +87,7 @@
 class TestQuadrect:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         ## Create Python Data for quadrect
         # Create the python data -- similar to notebook code
         kinds = ["trap", "simp", "lege", "N", "W", "H", "R"]
@@ -229,7 +229,7 @@ def test_quadrect_2d_H2(self):
 class TestQnwcheb:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_cheb_1, cls.w_cheb_1 = qnwcheb(n, a, b)
         cls.x_cheb_3, cls.w_cheb_3 = qnwcheb(n_3, a_3, b_3)
 
@@ -249,7 +249,7 @@ def test_qnwcheb_weights_3d(self):
 class TestQnwequiN:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_equiN_1, cls.w_equiN_1 = qnwequi(n, a, b, "N")
         cls.x_equiN_3, cls.w_equiN_3 = qnwequi(n_3, a_3, b_3, "N")
 
@@ -269,7 +269,7 @@ def test_qnwequiN_weights_3d(self):
 class TestQnwequiW:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_equiW_1, cls.w_equiW_1 = qnwequi(n, a, b, "W")
         cls.x_equiW_3, cls.w_equiW_3 = qnwequi(n_3, a_3, b_3, "W")
 
@@ -289,7 +289,7 @@ def test_qnwequiW_weights_3d(self):
 class TestQnwequiH:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_equiH_1, cls.w_equiH_1 = qnwequi(n, a, b, "H")
         cls.x_equiH_3, cls.w_equiH_3 = qnwequi(n_3, a_3, b_3, "H")
 
@@ -309,7 +309,7 @@ def test_qnwequiH_weights_3d(self):
 class TestQnwequiR:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_equiR_1, cls.w_equiR_1 = qnwequi(n, a, b, "R", random_state=41)
         temp, cls.w_equiR_3 = qnwequi(n_3, a_3, b_3, "R", random_state=42)
 
@@ -346,7 +346,7 @@ def test_qnwequiR_weights_3d(self):
 class TestQnwlege:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_lege_1, cls.w_lege_1 = qnwlege(n, a, b)
         cls.x_lege_3, cls.w_lege_3 = qnwlege(n_3, a_3, b_3)
 
@@ -366,7 +366,7 @@ def test_qnwlege_weights_3d(self):
 class TestQnwnorm:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_norm_1, cls.w_norm_1 = qnwnorm(n, a, b)
         cls.x_norm_3, cls.w_norm_3 = qnwnorm(n_3, mu_3d, sigma2_3d)
 
@@ -386,7 +386,7 @@ def test_qnwnorm_weights_3d(self):
 class TestQnwlogn:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_logn_1, cls.w_logn_1 = qnwlogn(n, a, b)
         cls.x_logn_3, cls.w_logn_3 = qnwlogn(n_3, mu_3d, sigma2_3d)
 
@@ -406,7 +406,7 @@ def test_qnwlogn_weights_3d(self):
 class TestQnwsimp:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_simp_1, cls.w_simp_1 = qnwsimp(n, a, b)
         cls.x_simp_3, cls.w_simp_3 = qnwsimp(n_3, a_3, b_3)
 
@@ -426,7 +426,7 @@ def test_qnwsimp_weights_3d(self):
 class TestQnwtrap:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_trap_1, cls.w_trap_1 = qnwtrap(n, a, b)
         cls.x_trap_3, cls.w_trap_3 = qnwtrap(n_3, a_3, b_3)
 
@@ -446,7 +446,7 @@ def test_qnwtrap_weights_3d(self):
 class TestQnwunif:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_unif_1, cls.w_unif_1 = qnwunif(n, a, b)
         cls.x_unif_3, cls.w_unif_3 = qnwunif(n_3, a_3, b_3)
 
@@ -466,7 +466,7 @@ def test_qnwunif_weights_3d(self):
 class TestQnwbeta:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_beta_1, cls.w_beta_1 = qnwbeta(n, b, b + 1.0)
         cls.x_beta_3, cls.w_beta_3 = qnwbeta(n_3, b_3, b_3 + 1.0)
 
@@ -486,7 +486,7 @@ def test_qnwbeta_weights_3d(self):
 class TestQnwgamm:
 
     @classmethod
-    def setup(cls):
+    def setup_method(cls):
         cls.x_gamm_1, cls.w_gamm_1 = qnwgamma(n, b)
         cls.x_gamm_3, cls.w_gamm_3 = qnwgamma(n_3, b_3)
 
diff --git a/quantecon/tests/test_rank_nullspace.py b/quantecon/tests/test_rank_nullspace.py
index 8518a7431..9dffafad9 100644
--- a/quantecon/tests/test_rank_nullspace.py
+++ b/quantecon/tests/test_rank_nullspace.py
@@ -9,7 +9,7 @@
 
 class TestRankNullspace:
 
-    def setup(self):
+    def setup_method(self):
         self.A1 = np.eye(6)
         self.A2 = np.array([[1., 0, 0], [0., 1., 0], [1., 1., 0.]])
         self.A3 = np.zeros((3, 3))
diff --git a/quantecon/tests/test_robustlq.py b/quantecon/tests/test_robustlq.py
index 7573c36c5..2e900328d 100644
--- a/quantecon/tests/test_robustlq.py
+++ b/quantecon/tests/test_robustlq.py
@@ -10,7 +10,7 @@
 
 class TestRBLQControl:
 
-    def setup(self):
+    def setup_method(self):
         # Initial Values
         a_0     = 100
         a_1     = 0.5
diff --git a/quantecon/util/tests/test_combinatorics.py b/quantecon/util/tests/test_combinatorics.py
index 387c73822..c3bdc95d6 100644
--- a/quantecon/util/tests/test_combinatorics.py
+++ b/quantecon/util/tests/test_combinatorics.py
@@ -11,7 +11,7 @@
 
 
 class TestKArray:
-    def setup(self):
+    def setup_method(self):
         self.k_arrays = np.array(
             [[0, 1, 2],
              [0, 1, 3],
diff --git a/quantecon/util/tests/test_numba.py b/quantecon/util/tests/test_numba.py
index 78a65409b..ef6dabac8 100644
--- a/quantecon/util/tests/test_numba.py
+++ b/quantecon/util/tests/test_numba.py
@@ -14,7 +14,7 @@ def numba_linalg_solve_orig(a, b):
 
 
 class TestNumbaLinalgSolve:
-    def setup(self):
+    def setup_method(self):
         self.dtypes = [np.float32, np.float64]
         self.a = np.array([[3, 2, 0], [1, -1, 0], [0, 5, 1]])
         self.b_1dim = np.array([2, 4, -1])
@@ -49,7 +49,7 @@ def test_singular_a(self):
 
 
 class TestCombJit:
-    def setup(self):
+    def setup_method(self):
         self.MAX_INTP = np.iinfo(np.intp).max
 
     def test_comb(self):
diff --git a/quantecon/util/tests/test_timing.py b/quantecon/util/tests/test_timing.py
index 4c60fbf59..0a49d77a0 100644
--- a/quantecon/util/tests/test_timing.py
+++ b/quantecon/util/tests/test_timing.py
@@ -10,7 +10,7 @@
 
 
 class TestTicTacToc:
-    def setup(self):
+    def setup_method(self):
         self.h = 0.1
         self.digits = 10