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The purpose of this paper is to give a systematic account of the maximum likelihood inference concerning cointegration … vectors in non-stationary vector value autoregressive time series with Gaussian errors. The hypothesis of r cointegration … vectors is given a simple parametric formulation in terms of cointegration vectors and their weights. We then estimate and …
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long run movements in the real exchange rate for Denmark and Norway, while demand shocks account for most of the long run … variance in the real exchange rate for Finland and Sweden. …
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The compensation hypothesis predicts a positive causation from international economic openness to the size of the public sector, as governments step in to perform a risk mitigating role to counterbalance the increasing exposure to external risk and the economic dislocations caused by growing...
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important determinant of long-run movements in the real exchange rate for Denmark and Norway, while demand shocks account for … most of the long-run variance in the real exchange rate for Finland and Sweden …
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