Stability and Speed of Adjustment under Retiming of Lags
Richard B. Harriff, Donald V. T. Bear, John Conlisk · Econometrica · 1980
The subject is retiming of lags in a system of linear difference equations. The issues are (i) the effect of retiming on stability and (ii) the effect of retiming on speed of adjustment. Regarding (i), a theorem due to Bear [1] is sharpened; and new conditions for stability to survive under a retiming of lags are obtained. Regarding (ii), the main results concern the effects of lag perturbations and spread perturbations on speed of adjustment in models with nonnegative coefficients.