The generic properties of equilibrium correction mechanisms
- Author:
- Gunnar Bårdsen, Stan Hurn og Kenneth Lindsay
- Series:
- Working Paper
- Number:
- 8/1999
Linear dynamic equilibrium correction mechanisms are shown to follow from the discreation of continuous economic processes with steady-state solutions. In addition, the proposed procedure provides testable restrictions on the coefficients of the dynamic econometric model.
JEL Classification: C50.
Keywords: Equilibrium correction, dynamic modelling, difference schemes, power series representations
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ISSN 1502-8143 (online)