We examine the long-run
averages of real interest rates and these related variables for 20 countries during the past 60 years or so.
That is, we will identify which brands compete with each other in the long-run
and the short-run.
Another approach, called long-run
risks or LRR, emphasizes variations in the long-run
growth rate and the variance of shocks to the growth rate (stochastic volatility).
Further, when the long-run
(i.e., up to five years) impact of IPO market timing on issuing firms' capital structure is examined, that market timing does not have a persistent impact on issuing firms' capital structure.
Bansal also posits that cash flows on particular portfolios differ in the extent to which they are subject to long-run
risks that are more or less correlated with the long-run
risk in aggregate consumption.
With respect to aggregate supply, there appears to be universal agreement that the long-run
aggregate supply curve is vertical at the full-employment level of real gross domestic product.
My answer is that a good chunk is a sustainable, long-run
development reflecting improved business practices in the U.S., greater flexibility of the labor force and application of new technology.
Key factors determining the increase in rents and home prices include (1) the increase in demand for housing in the private sector resulting from the reduction of on-base naval housing, (2) the short-run and long-run
elasticities of supply of private sector housing with respect to housing prices, and (3) the elasticity of demand to live in a defined housing area with respect to housing prices.
elasticities of the trade balance with respect to the real effective exchange rate indicate that a substantial change in relative prices should be made to considerably improve trade accounts.
For example, Lucas (1972) and Sargent (1971) provide examples in which it is impossible to test long-run
neutrality using reduced-form econometric methods.
However, unlike Bentzen and Engsted, I do not estimate the long-run
relationship, or cointegrating vector, from a simple static regression as suggested by Engle and Granger.