Norges Bank

Working Paper

The generic properties of equilibrium correction mechanisms

Gunnar Bårdsen, Stan Hurn og Kenneth Lindsay
Working Paper

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

Norges Bank’s Working Papers present research projects and reports that are generally not in their final form. Other analyses by Norges Bank’s economists are also included in the series. The views and conclusions in these documents are those of the authors.

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ISSN 1502-8143 (online)

Published 4 April 1999 12:11
Published 4 April 1999 12:11