What are we learning about the long-run?

Clive Granger

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: An attempt is made to link together earlier definitions of the long-run found in micro and macro economics with recent developments in econometrics; specifically cointegration. It is suggested that the links are not strong and that most of the previous work in econometric theory has been unnecessarily over-precise. Unit root processes can be replaced by processes that approximate them without loss of interpretation. The possibility of embedding cointegration theory into a very general non linear theory is suggested. An example uses a nonIinear relationship between UK short and long run interest rate proposed by Frank Paish.

Keywords: The; long-run; in; microeconomics; The; long-run; in; macroeconomics; Cointegration; Approximating; unit; roots; Cointegration; in; nonlinear; models (search for similar items in EconPapers)
Date: 1992-05
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://e-archivo.uc3m.es/rest/api/core/bitstreams ... 77c8e583ff87/content (application/pdf)

Related works:
Journal Article: What Are We Learning about the Long-Run? (1993)
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:cte:werepe:2886

Access Statistics for this paper

More papers in UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía
Bibliographic data for series maintained by Ana Poveda ().