Interpreting an error correction model: Partial adjustment, forward‐looking behaviour, and dynamic international money demand
误差修正模型的解释：部分调整、前瞻行为与国际动态货币需求
Abstract An error correction model is derived from a stochastic dynamic programming problem incorporating rational expectations. A parametric restriction is derived that allows a test for the theoretical proposition that the optimal strategy behind the error correction from entails the failure to asymptotically close the gap between the choice variable and the growing target. This is accomplished by nesting a partial adjustment model with forward‐looking expectations within…