Gunnar Bårdsen, Stan Hurn og Kenneth Lindsay

Print

The generic properties of equilibrium correction mechanisms

Arbeidsnotat 1999/8, 7 s. ISSN 0801-2504. ISBN 82-7553-146-2.

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