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Cutting-edge research from the UCL Department of Economics

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Category: Theory & methods

  • Dynamic models of the economy: a new approach to time-varying parameters

    Theory & methods

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    26th January 2026

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    Dennis Kristensen

    Young Jun Lee

    Relationships between economic and financial variables naturally change over time, but many of the analytical models used in decision-making assume that the underlying parameters remain constant. A novel theory provides a more flexible framework for research, forecasting and policy design.

    Dynamic models of the economy: a new approach to time-varying parameters
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