Article ID Journal Published Year Pages File Type
5061450 Economics Letters 2010 4 Pages PDF
Abstract
Persistence in economic variables is common. We re-examine that using a time-varying parameter model. Results support a substantial reduction in persistence, particularly, when allowing for time-variation in the constant. This has important implications for policy-making and the effect of shocks.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Persistence and time-varying coefficients
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