Structural Stability and Recursive Residuals: Quarterly Demand for Meat

Methods have been developed recently for continual evaluation of structural stability for model specification CUSUM and CUSUMSQ tests suggested by Brown, Durbin, and Evans employ recursively ! calculated residuals to permit the examination of structural stability Easily developed plots can be used to gene rate the inferences which can be supported by the tests This article reports on an application of these tests for five quarterly meat demand equations for Canada