The D.Currie's test on the long run dynamic properties of the autoregressive-distributed lag models

A. M. Binotti
A major criticism about the autoregressive-distributed lag (AD) models is that the long run dynamic properties of such models are often not sensible and well-determined. These dynamic properties pose particular problems both for practical forecasting and simulation and because economic theory not always leads us to expect the presence of long run dynamic effects. In a recent paper D. Currie (1981) suggested a particular test which allows to examine the significance of these long run...