This paper studies the dynamic structural relationship between the trade balance and the terms of trade by means of a time-scale decomposition. Our analysis is carried out using data obtained from ten developed economies; Australia, Austria, Canada, France, Italy, Japan, Norway, Switzerland, the...

In recent years economists have begun to use the techniques of non-linear dynamics to show that some apparently erratic and turbulent economic phenomena reflect subtle underlying patterns. How do cyclic and chaotic dynamics arise in economic models of equilibrium? How can empirical methods be...

In this chapter we perform a Monte Carlo simulation study of the errors-in-variables model examined in Ramsey, Gallegati, Gallegati, and Semmler (2010) by using a wavelet multiresolution approximation approach. Differently from previous studies applying wavelets to errors-in-variables problem,...