Adjustment Asymmetries and Hysteresis in Simple Dynamic Models

Mark Setterfield ()

The Manchester School of Economic & Social Studies, 1998, vol. 66, issue 3, pages 283-301

Abstract: The author considers the formal modeling of hysteresis in light of the notion that this process is a special case, contingent on the existence of unit roots in first order difference equations. It is argued that variables displaying adjustment asymmetries along disequilibrium time paths can generate hysteresis, irrespective of the existence of unit roots. Examples of adjustment asymmetries and hysteresis in investment and in the Phillips curve are provided. Copyright 1998 by Blackwell Publishers Ltd and The Victoria University of Manchester

Date: 1998
View citations in EconPapers

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:bla:manch2:v:66:y:1998:i:3:p:283-301

Access Statistics for this article

More articles in The Manchester School of Economic & Social Studies from Blackwell Publishing
Series data maintained by Christopher F. Baum ().