The purpose of this paper is to examine the properties of locally explosive regimes in the light of steady state results for threshold auto-regressive (TAR) models recently derived by Knight and Satchell (2011) [Journal of Time Series Econometrics, 3]. We study the conditions under which a...

The purpose of this paper is to examine the properties of bubbles in the light of steady state results for threshold auto-regressive (TAR) models recently derived by Knight and Satchell (2011). We assert that this will have implications for econometrics. We study the conditions under which we...