A STUDY OF THE APPLICATION OF STATE‐DEPENDENT MODELS IN NON‐LINEAR TIME SERIES ANALYSIS

Abstract
The theory of state‐dependent models was developed by Priestley (1980), and a few simple applications were given in Priestley (1981). In this paper, an extensive study of the application of state‐dependent models to a wide variety of non‐linear time series data is carried out. Both real and simulated data are used in the study, and the problems encountered are highlighted. The method is demonstrated to be successful in practice in many cases, and suggestions for the further development of the algorithm are also given.