Burgess, Simon M.Escribano, ÁlvaroPfann, Gerard A.Universidad Carlos III de Madrid. Departamento de Estadística2009-02-172009-02-171993-11https://hdl.handle.net/10016/3681In this paper we compare the asymmetric and time-varying error-correction models that have recently been proposed, and apply these to the case of UK aggregate labour demand. The aim of the paper is to investigate the possible co-existence of time-varying adjustment on the one hand, and constant asymmetric error-correction on the other hand. We find that without allowing for time-varying adjustment variables, the asymmetric error-correction models of Granger and Lee (1989) and Escribano (1986) work well. But once the time-varying adjustment variables are included, the evidence for time-invariant asymmetric adjustment is marginal.application/pdfengAtribución-NoComercial-SinDerivadas 3.0 EspañaNonlinear dynamicsNonlinear error correctionDynamic labour demandworking paperEstadísticaopen access