An Approximation of the Hysteresis Loop by Linear Partial Functions. Econometric Modelling and Estimation / Eine Approximation der Hysteresis-Schleife über lineare Teilfunktionen. Ökonometrische Modellbildung und Schätzung

Summary A linearized model of the (macro) hysteresis loop is derived which shares a closer affinity to the original concept of hysteresis than conventional descriptive techniques by linear difference equations. The original loop is approximated by a rhombus shape path consisting of linear partial functions. Persisting effects are captured by vertical shifts of the linear sections. Additionally, a linear-hysteretic regression model is introduced and exemplarily applied for the analysis of the relation between dollar/Yen exchange rate and the US-imports from Japan.