Karlsson, Sune; Österholm, Pär - 2018
quarterly data from 1995Q1 to 2017Q3 and new tools for model selection, we compare a model with time-varying parameters and … stochastic volatility to a specification with constant parameters and covar-iance matrix. We find strong evidence in favour of … the specification with time-varying parameters and sto-chastic volatility. Our results indicate that the Swedish Phillips …