Threshold Models in Theory and Practice
نویسندگان
چکیده
Threshold models have gained much recent attention in applied economics for modeling nonlinear behavior. The appeal for these models is in part due to the observable pattern that many economic variables follow, such as asymmetric adjustment towards equilibrium. Recent developments in model specification derive error-correction models as a specific type of threshold models. This paper summarizes the developments in threshold modeling over the past two decades and reviews a sample of empirical works in agricultural economics. Guidance is provided for obtaining software programs.
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