Hamilton's nonlinear filter is extended to allow state transitions to be duration dependent. Restrictions are imposed on the state transition matrix associated with a tau-order Markov system such that the corresponding first-order conditional transition probabilities are functions of both the...

This paper investigates the effects of inward FDI on per-capita income and growth of the US states since the mid-1970s. Using a Markov chain approach, it shows that both quantitative and qualitative characteristics of FDI affect per-capita income and growth. Employment-intensive FDI,...

This article aims at assessing the main characteristics of the business cycle of 80 developed and developing countries. By comparing the possibility for these economies to enter or to exit a recession and the associated consequences, it aims at complementing existing literature with regard to...