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- W3005532908 abstract "This paper discusses the concept of cointegrating space for systems integrated of order higher than 1. It is first observed that the notions of (polynomial) cointegrating vectors and of root functions coincide. Second, the cointegrating space is defined as a subspace of the space of rational vectors. Third, it is shown that canonical sets of root functions can be used to generate a basis of the cointegrating space. Fourth, results on how to reduce bases of rational vector spaces to polynomial bases with minimal order (i.e. minimal bases) are shown to imply the separation of cointegrating vectors that potentially do not involve differences of the process from the ones that require them. Finally, it is argued that minimality of polynomial bases and economic identification of cointegrating vectors can be properly combined." @default.
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- W3005532908 date "2019-01-01" @default.
- W3005532908 modified "2023-09-27" @default.
- W3005532908 title "Cointegration, root functions and minimal bases" @default.
- W3005532908 hasPublicationYear "2019" @default.
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