Abstract
In this paper we use the first-order autoregressive scheme in order to introduce dynamics into the AIDS model. We also consider the theoretical restrictions of additivity, homogeneity and symmetry, and use two different specifications of the covariance matrix. We estimate the models using import allocation data for the UK 1952–1979 of five EEC countries and test different specifications against each other.
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The authors are indebted to an anonymous referee and Prof. T. Kloek for useful comments and suggestions and to Prof. L.A. Winters for putting his data at our disposal.
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Van Heeswijk, B.J., de Boer, P.M.C. & Harkema, R. A dynamic specification of an AIDS import allocation model. Empirical Economics 18, 57–73 (1993). https://doi.org/10.1007/BF01238879
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DOI: https://doi.org/10.1007/BF01238879