Chapter 1. Introductory Developments -- Chapter 2. The Simple Regression Model -- Chapter 3. The Multiple Regression Model -- Chapter 4. Heteroskedasticity and Autocorrelation of Errors -- Chapter 5. Problems With Explanatory Variables -- Chapter 6. Distributed Lag Models -- Chapter 7. An...

Long-lasting misalignments in the real exchange rates are sometimes explained by the presence of a nonlinear adjustment process towards the long-run equilibrium. However, while it is possible that evidence of nonlinearity exists for some real exchange rates, outliers and nonlinearity may easily...