Mean lag in general error correction models

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 143
Issue: C
Pages: 107-110

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

Most of the empirical literature inappropriately applies Hendry’s (1995) mean lag formula–which he derived for first order autoregressive distributed lag models under the assumption of a homogeneous long-run equilibrium–to error correction models that have complex lag structures and lack long-run homogeneity. We derive an expression for the mean lag in general error correction models without imposing the assumption of a homogeneous equilibrium. In addition, we quantify the bias due to the incorrect use of Hendry’s (1995) formula.

Technical Details

RePEc Handle
repec:eee:ecolet:v:143:y:2016:i:c:p:107-110
Journal Field
General
Author Count
2
Added to Database
2026-01-25