Eliasson, Ann-Charlotte; Teräsvirta, Timo - Economics Institute for Research (SIR), … - 2002
. This contradiction is explained and the two equations reconciled in a nonlinear framework by applying a smooth transition … reconciled in a nonlinear
framework by applying a smooth transition regression model to the data.
Keywords: consumption equation …, forecast failure, model misspecifi-
cation testing, nonlinearity, smooth transition regression
JEL Classification Codes:C22 …