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The general solution to an autoregressive law of motion

Brendan K. Beare, Massimo Franchi, Phil Howlett

arXiv 3 Feb 2024 · Econometrics · publishedQuantitative Economics (2026)

arXiv:2402.01966 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide a complete description of the set of all solutions to an autoregressive law of motion in a finite-dimensional complex vector space. Every solution is shown to be the sum of three parts, each corresponding to a directed flow of time. One part flows forward from the arbitrarily distant past; one flows backward from the arbitrarily distant future; and one flows outward from time zero. The three parts are obtained by applying three complementary spectral projections to the solution, these corresponding to a separation of the eigenvalues of the autoregressive operator according to whether they are inside, outside or on the unit circle. We provide a finite-dimensional parametrization of the set of all solutions.

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59
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100
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59
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
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2Banerjee, Sudipto, and Anindya Roy (2014) Linear Algebra and Matrix Analysis for Statistics0.73732100%
3Gouriéroux, Christian, and Jean-Michel Zakoïan (2017) Local explosion modelling by non-causal process0.73732100%
4Hamilton, James D.\ (1994) Time Series Analysis0.73732100%
5Hannan, Edward J., and Manfred Deistler (1988) The Statistical Theory of Linear Systems0.73732100%
6Hansen, Peter R.\ (2005) Granger's representation theorem: A closed form expression for $I(1)$ processes0.69361100%
7Hansen, Bruce E.\ (2022) Econometrics0.69361100%
8Axler, Sheldon (2024) Linear Algebra Done Right0.64422100%
9Eddington, Arthur S.\ (1929) The Nature of the Physical World0.64422100%
10Franchi, Massimo, and Paolo Paruolo (2019) A general inversion theorem for cointegration self0.64422100%

Showing the top 10 of 59 scored citations.