Munich Personal RePEc Archive

Estimating a modified nonlinear Hicks model: Evidence from the US economy (1960-2008)

Michaelides, Panayotis G. and Belegri-Roboli, Athena and Arapis, Gerasimos (2010): Estimating a modified nonlinear Hicks model: Evidence from the US economy (1960-2008).

[img]
Preview
PDF
MPRA_paper_74461.pdf

Download (155kB) | Preview

Abstract

This paper presents a modified nonlinear Hicks model of the cycle and a method for deriving estimators based on Nonlinear Least Squares and other relevant criteria. Hicks thought that fluctuations in investment, caused by nonlinear changes in autonomous investment and the acceleration principle governing induced investment, led to an adjustment process taking place throughout many periods. An empirical application for the US economy (1960-2008) demonstrates the almost ideal performance of the modified model and the proposed method.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.