Output Persistence in Portugal

Antonio Caleiro
International Journal of Finance, Insurance and Risk Management, Volume 2, Issue 3, 206, 2012
DOI: 10.35808/ijfirm/45

Abstract:

The measurement of output persistence in Portugal is the main goal of this paper. By the use of a non-parametric methodology, it is shown that the level of output in Portugal exhibits a relatively high degree of persistence. This result is essential from a (contractionary/expansionary) policy point of view as the magnitude and duration of policy effects depend upon the level of persistence in output.


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