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| Terence Tai-Leung Chong, Guoxin Liu and Isabel Kit-Ming Yan |
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| ''Habit Formation: Deep and Uncertain'' |
| ( 2007, Vol. 3 No.2 ) |
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| Most of the existing structural-change models presume that the impact of a change is instantaneous and occurs at the same time for all individuals. In this paper, we develop a new structural-change model to measure the lag length between the time when an economic crisis breaks out and the time when the impact is transmitted to various economic sectors. Our model allows different transmission lags for individuals with heterogenous characteristics. Simulation results for the performance of the estimators are reported. |
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| Keywords: |
JEL: C2 - Single Equation Models; Single Variables: General
C5 - Econometric Modeling: General |
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| Manuscript Received : Jul 22 2006 | | Manuscript Accepted : Jan 10 2007 |
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