correct punctuation for et al
In 2008, Clark et al provided a review of research addressing the time se-ries properties of the net discount ratio or NDR* (Clark et al, 2008, Table 1, p. 234), while proposing their own method of modeling the NDR* as a fractionally integrated process. They observed that economy-wide and sector NDR* are “long memory processes that are mean-reverting”, i.e., that “[I]f shocked away from its historical average, a mean-reverting but non-stationary NDR* will eventually revisit this level (Clark, et al, 2008, p. 242). The studies cited in their literature review were mixed on NDR/NDR* stationarity, with structural breaks in NDR over time sometimes used to explain a return to stationarity. One study cited, Braun, et al, was the least convinced on this point, in which NDR was found to be “…nonstationary even after accounting for two structural breaks” (Braun et, al 2005, cited in Clark et al, 2008, p. 234).
Hero of the day
Person asked the most questions.