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-stationary variables. Focusing on cointegration issues, some methodological aspects ere discussed, attempting to integrate coherently the … several steps of the modelling strategy. These range from unit to cointegration testing and to testing for instability in the … cointegration vector. An empirical example with Portuguse data tries to illustrate the usefulness of this approach, where a simple …
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We examine the transition process from a centrally planned to a market-based monetary system in China, with the objective of giving a functional form to the transition in money demand. Applying the cointegrating Time-Varying Smooth Transition Regression model proposed by Choi and Saikkonen...
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