Palgrave Handbook of Econometrics: Applied Econometrics

David F. Hendry 51

1940 1960 1980

–0.10

–0.05

0.00

0.05

0.10 a Δ~ef

Δef

1940 1960 1980

0.0

2.5

5.0 b ût

~ut

1940 1960 1980

–0.10

–0.05

0.00

0.05

0.10 Δ^ef^

Δef

1950 1960 1970 1980 1990

–0.050

–0.025

0.000

0.025

0.050

0.075

c d Δ~ef Δef

Figure 1.7 Fitted and actual values, residuals and forecasts foref,t

1920 1940 1960 1980 2000

–12.75

–12.50

–12.25

–12.00 ef, 1^
ef, 0

1920 1940 1960 1980 2000

–11.5

–11.0

–10.5

–10.0 e 0

e 1

1920 1940 1960 1980 2000

0.0

0.1

0.2

0.3

s 0

s 1

1920 1940 1960 1980 2000

1.0

1.2

1.4

a 1

a 0

Figure 1.8 Revised data on food expenditure time series