Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/192209 
Year of Publication: 
1998
Series/Report no.: 
Discussion Papers No. 226
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
This paper uses imperfect competition as a basis for modelling the export price for an aggregated commodity produced by the Norwegian private mainland economy. The long run solution is analysed using a cointegration technique. The dynamics are modelled according to two different approaches; a backward looking error correction model and a forward looking model where rational expectations are assumed. The dynamic structure of the forward looking model is derived from a linear quadratic adjustment cost function under rational expectations, but the empirical results do not support this specification. We cannot reject super-exogeneity to be present in the backward looking error correction model. The empirical evidence are thus not consistent with rational expectations.
Subjects: 
Export price
Imperfect competition
LQAC models
ECM
Cointegration
Rational expectation
Super exogeneity
JEL: 
C51
C52
D84
E31
Document Type: 
Working Paper

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