probabilities for regime switching. This study emphasizes that optimal thresholds are either overvalued or undervalued in the … absence of time-varying transition probabilities. Accordingly, the stochastic nature of transition probabilities has important …

probabilities and the steady-state distribution of all the firms are stationary at first-order, implying that chain depends on the … previous state. The steady-state probabilities of all the firms examined exhibit relatively high price stability in the long run …