How Robust Is the Finding That Innovations to UK Output Are Persistent?
Author InfoMills, Terence C Abstract The finding that output innovations in the United Kingdom are persistent is shown to be robust to a variety of extensions and modifications to the unit root-persistence methodology. A one percent innovation to current output changes long-run forecasts of output by at least one percent and, although the possibility that output returns to a constant trend path cannot be completely ruled out, any such mean reversion would have to be extremely slow; the data are much more likely to be consistent with an output process having an important random walk component in which innovations have a strong tendency to persist. Copyright 1992 by Scottish Economic Society. Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options: 1. Check below under “Related research” whether another version of this item is available online. 2. Check on the provider’s web page whether it is in fact available. 3.
