Francis, Neville (contributor); … - 2005 - Rev
standard asymptotic theory of non-
stationary processes.
When productivity xt is I(1), it can be decomposed into the sum of a …-run restrictions do not require bC(1) for identi�ca-
tion. However, short-run restrictions are not necessarily implied by the theory as …�cation still outperforms the conventional identi�cation approach.
3.3 Stationary Technology
Although the RBC theory assumes that …