MODELING CYCLICAL BEHAVIOR WITH DIFFERENTIAL-DIFFERENCE EQUATIONS IN AN UNOBSERVED COMPONENTS FRAMEWORK

B-Tier
Journal: Econometric Theory
Year: 2002
Volume: 18
Issue: 2
Pages: 387-419

Authors (2)

Chambers, Marcus J. (University of Essex) McGarry, Joanne S. (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper considers a continuous time unobserved components model in which the cyclical component follows a differential-difference equation whereas the trend and seasonal components follow more standard differential equations. Estimation of the parameters of the model with either a stock or a flow variable is analyzed using a frequency domain Gaussian estimator whose asymptotic properties are derived paying particular attention to the role of a truncation parameter that arises in the practical computation of the spectral density function. The results of a simulation exercise, which assesses the finite sample performance of the estimator, are also provided.

Technical Details

RePEc Handle
repec:cup:etheor:v:18:y:2002:i:02:p:387-419_18
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25