IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

A Test for Strong Hysteresis

Listed author(s):
  • Piscitelli, Laura
  • Cross, Rod
  • Grinfeld, Michael
  • Lamba, Harbir

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.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: Access to the full text of the articles in this series is restricted.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Springer & Society for Computational Economics in its journal Computational Economics.

Volume (Year): 15 (2000)
Issue (Month): 1-2 (April)
Pages: 59-78

in new window

Handle: RePEc:kap:compec:v:15:y:2000:i:1-2:p:59-78
Contact details of provider: Web page:

Web page:

More information through EDIRC

Order Information: Web:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.