The topic of this chapter is forecasting with nonlinear models. First, a number of well-known nonlinear models are introduced and their properties discussed. These include the smooth transition regression model, the switching regression model whose univariate counterpart is called threshold...

In this paper we study the possible asymmetry of business cycles using time series techniques. The hypothesis of linearity is tested against various forms of nonlinearity, some of which are capable of representing processes generating nonsymmetric cycles. Quarterly unemployment and industrial...