In this essay the method to estimate asymmetric relations with error correction models by splitting the error correction term u[t-1] in [+] u[t-1] and [-] u[t-1] , proposed by Granger and Lee (1989), (...)
In practice, long-term and short-term irreversible reactions for example of demand due to changes in prices, advertising expenditures, etc. are more important than is commonly assumed in economic (...)