Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5062205 | Economics Letters | 2008 | 5 Pages |
Abstract
We propose a methodology for modeling convergence in the presence of transitional dynamics. We explore the dynamic behavior of the difference between two series by allowing the parameters to change across time without imposing any formulation restrictions, using a threshold approach. We adopt an MCMC algorithm to identify the number and the location of the breaks.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Veni Arakelian, Demetrios Moschos,