Error correction modeler . co-integration and the internal model principle

The paper considers the conditions under which a system of dynamic equations will be corisisterrt with some prespecified inultivariate equilibrium specification. Connections are also drawn between recer► t develuprnents in the analysis of multivariate error correction models and the theory of co-integration and what is kr► uwn as —rhe Internal Model Principle" in the design of robust linear feedback rules . Apart from clarifying and generalising our understanding of error currectiun systems and co-- integration this approach suggests a relatively simple method for identifying the restrictions that detern-iir,e whether a given dynamic system satisfies the conditions for being an error correction specification.


Issue Date:
Sep 09 1986
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/268250
Language:
English
Total Pages:
36




 Record created 2018-02-13, last modified 2018-02-13

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