Huang, Yu-Lieh; Huang, Chao-Hsi; Kuan, Chung-Ming - In: Journal of Macroeconomics 30 (2008) 4, pp. 1816-1836
In this paper, we reexamine the permanent income-consumption relationship analytically and empirically, based on the innovation regime-switching (IRS) model developed in [Kuan, C.M., Huang, Y.L., Tsay, R.S., 2005. An unobserved component model with switching permanent and transitory innovations....