A Test for Strong Hysteresis
The mathematical definition of systems with hysteresis, that is nonlinear input-output systems with memory, is different from the definition usually applied to economic systems. Economic theory and modelling practice have almost always specified simple dynamic systems with regular leads and lags in their responses, corresponding to input-output systems with unit or zero (or at least stable) roots. These models cannot capture the "selective memory" feature of hysteretic behaviour, that is, the influence only of certain past events (typically, non-dominated sequences of previous peaks and troughs). There is therefore a difficulty in testing for and validating economic models containing hysteretic behaviour; appropriate empirical tests have not been developed. In particular, the usual unit vs. zero (or stable) root tests used in econometric analysis are unable to detect hysteretic behaviour or to distinguish it from more conventional economic behaviour. The purpose of this paper is to propose a new way of testing for hysteresis, by drawing on some ideas in the mathematical/control theory literature and adapting them to fit into the economic frameworks with elements of hysteresis. Citation Copyright 2000 by Kluwer Academic Publishers.
Volume (Year): 15 (2000)
Issue (Month): 1-2 (April)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/10614/PS2|
When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:15:y:2000:i:1-2:p:59-78. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.