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R.G. Goodwin mentioned that "economists will be led, as natural scientists have been led, to seek in nonlinearities an explanation of the maintenance of oscillation" (Goodwin, Econometrica 19(1), 1951); following this reasoning, we studied business cycles as if they were generated by nonlinear...
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need to use nonlinear models to describe business cycle dynamic behaviour. Their approach is model (estimation)-free, based … on testing only. The authors aim to maximize power to detect non-linearities and, simultaneously, they purport avoiding …
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that exacerbate each other although such a vicious circle could be broken by accurate and extensive testing. This …
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econometric method that uses conjugate conditionals to allow for feasible and quick estimation of DSGE models with correlated …
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