Nonlinear Dynamics and European GNP Data - Abstract
Nonlinear Dynamics and European GNP Data
Domenico Delli Gatti
Università Cattolica
Mauro Gallegati
Università di Teramo
Domenico Mignacca
Società Interbancaria
Pages 43-59
Abstract
The aim of this paper is to assess whether the data-generation process
of the GDP can be interpreted by means of a nonlinear model instead of
a linear one. We model the first differences of logarithmic real GDP
data with constant parameters for those European countries (France,
Germany, Italy, U.K., Denmark, Sweden, and Norway) which have
long-term time series. Since the linear autoregressive model is
rejected, an alternative nonlinear model has been specified: it turns
out that the annual European GDPs can adequately be described by means
of a nonlinear model with constant parameters.
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