Identifying Long-Run Behaviour with Non-Stationary Data.

Results for the identification of non-linear models are used to support the raditional form of he order condition by sufficient conditions. The sufficient conditions reveal a two step procedure for firstly checking generic identification and then testing identifiability. This approach canbe extended to sub-blocks of he system and it generalizes to non-linear rest rictions. The procedure is applied to an empirical model of he exchange rate, which is identified by diagonalising the system.