IDEAS home Printed from https://ideas.repec.org/p/ptu/wpaper/w200202.html
   My bibliography  Save this paper

Should we Distinguish Between Static and Dynamic Long Run Equilibrium in Error Correction Models?

Author

Listed:
  • Susana Botas

Abstract

This paper shows that there is no theoretical foundation to distinguish between static and dynamic long run equilibrium in error correction models with deterministically cointegrated variables, and so, that the so-called dynamic homogeneity restriction aimed at guaranteeing that the two solutions coincide, also lacks a theoretical justification. Examples in which dynamic homogeneity cannot hold are also discussed.

Suggested Citation

  • Susana Botas, 2002. "Should we Distinguish Between Static and Dynamic Long Run Equilibrium in Error Correction Models?," Working Papers w200202, Banco de Portugal, Economics and Research Department.
    • Handle: RePEc:ptu:wpaper:w200202
    as

    Download full text from publisher

    File URL: https://www.bportugal.pt/sites/default/files/anexos/papers/wp200202.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rasmus Kattai, 2007. "Constants do not stay constant because variables are varying," Bank of Estonia Working Papers 2007-01, Bank of Estonia, revised 02 Jan 2007.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ptu:wpaper:w200202. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: DEE-NTD (email available below). General contact details of provider: https://edirc.repec.org/data/bdpgvpt.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.