How Robust Is the Finding That Innovations to UK Output Are Persistent?

Terence C Mills

Scottish Journal of Political Economy, 1992, vol. 39, issue 2, 154-66

Abstract: The finding that output innovations in the United Kingdom are persistent is shown to be robust to a variety of extensions and modifications to the unit root-persistence methodology. A one percent innovation to current output changes long-run forecasts of output by at least one percent and, although the possibility that output returns to a constant trend path cannot be completely ruled out, any such mean reversion would have to be extremely slow; the data are much more likely to be consistent with an output process having an important random walk component in which innovations have a strong tendency to persist. Copyright 1992 by Scottish Economic Society.

Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (3)

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: https://EconPapers.repec.org/RePEc:bla:scotjp:v:39:y:1992:i:2:p:154-66

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().