Regression modelEconometrics / time series

Time-Varying Parameter Johansen Cointegration

Time-varying parameter (TVP) Johansen cointegration extends the classic Johansen framework by allowing the cointegrating vectors and adjustment speeds to evolve over time. It is designed for integrated multivariate time series whose long-run equilibrium relationships are subject to structural change, regime shifts, or gradual parameter drift, common in macroeconomic and financial data.

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Sources

  1. Johansen, S. (1991). Estimation and Hypothesis Testing of Cointegration Vectors in Gaussian Vector Autoregressive Models. Econometrica, 59(6), 1551–1580. DOI: 10.2307/2938278
  2. Park, J. Y., & Hahn, S. B. (1999). Cointegrating regressions with time varying coefficients. Econometric Theory, 15(5), 664–703. DOI: 10.1017/S0266466699155026

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ScholarGateTime-varying parameter Johansen cointegration (Time-Varying Parameter Johansen Cointegration). Retrieved 2026-06-04 from https://scholargate.app/tr/econometrics/time-varying-parameter-johansen-cointegration