In this paper, the authors reformulate the theoretical baseline DAS-AD model of Asada, Chen, Chiarella and Flaschel (2004) to allow-following Chen, Chiarella, Flaschel and Semmler (2005)-for its empirical estimation. The version of the model used here exhibits a Taylor interest rate rule in the...

Okun's (1962) seminal paper is an important study on economic growth and unemployment but a detailed exploration of the effect of productivity growth on unemployment has been left aside. Yet, the relationship between productivity growth and unemployment has been debated since long. In this paper...

In this paper, we consider the stability in regime-switching autoregressive models. Applying the concept of joint spectral radius to the regime-switching systems we provide a sufficient condition for the stationarity and the ergodicity of the regime-switching autoregressive models

In this note the author discusses the problem of updating forecasts in a time-discrete forecasting model when information arrives between the current period and the next period. To use the information that arrives between two periods, he assumes that the process between two periods can be...