all basic assumptions underlying the theory model should be formulated as a set of testable hypotheses on the long …-run structure of a CVAR model, a so called "theory consistent hypothetical scenario". The advantage of such a scenario is that it … forces us to formulate all testable implications of the basic hypotheses underlying a theory model. We demonstrate that most …

all basic assumptions underlying the theory model should be formulated as a set of testable hypotheses on the long …-run structure of a CVAR model, a so called ?theory consistent hypothetical scenario?. The advantage of such a scenario is that if … forces us to formulate all testable implications of the basic hypotheses underlying a theory model. We demonstrate that most …