Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Mar, 1980, Volume 48, Issue 2

Stability and Speed of Adjustment under Retiming of Lags<355:SASOAU>2.0.CO;2-M
p. 355-370

Donald V. T. Bear, John Conlisk, Richard Harriff

The subject is retiming of lags in a system of linear difference equations. The issues are (i) the effect of lag retiming on stability and (ii) the effect of lag retiming on speed of adjustment. Regarding (i), a theorem due to Bear [1] is sharpened; and new conditions for stability to survive under a retiming of lags are obtained. Regarding (ii), the main results concern the effects of "lag perturbations" and "spread perturbations" on speed of adjustment in models with nonnegative coefficients.

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