models, the relation between levels and differences, integration and cointegration, and the Hansen-Sargent prediction …

This paper tests for cointegration between regional output of an industry and national output of the same industry. An … equilibrium economic theory is presented to argue for the plausibility of cointegration, however, regional economic forecasting … using the shift and share framework often acts as if cointegration does not exist. Data analysis on broad industrial sectors …

, according to the Johansen procedure, cointegration fails to hold the farther out the forecasts extend. At the one year ahead …

output from first principles. Cointegration and common features (cycles) tests are performed and sectoral output data seem to …