The possibility of using time-varying parameter models in the context of error correction models is studied empirically. As an application, a money demand relationship (M1) for Venezuela is estimated from 1983 to 1994 within a cointegrated VAR framework. First, the stochastic properties of the...

The objective of this article is to study long-run Purchasing Power Parity (PPP) for a panel of 21 Organisation for Economic Co-operation and Development (OECD) countries from the end of the Bretton Woods era by applying a wide range of the econometric techniques available. This will allow us to...