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, 1997) is used to empirically implement the error correction catch-up dynamics. The application is to China's provinces … capita capital and per capita trade, which can account for China's economic growth miracle during the last two decades …
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-varying whereas the correlation remain constant over time. Under the parameterized alternative hypothesis the variance may change …
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We summarize some methods useful in formulating and solving Hansen-Sargent robust control problems, and suggest extensions to discretion and simple rules. Matlab, Octave, and Gauss software is provided. We illustrate these extensions with applications to the term structure of interest rates, the...
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