Markov switching
A regime model that allows the economy to move between different states with transition probabilities.
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Glossary
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Models and projections
A regime model that allows the economy to move between different states with transition probabilities.
A probability model often used for recession-risk or state-transition classification.
A change in the underlying behavior of the economy or series, such as moving from expansion to recession.
A move into a different macro state, such as a recession-risk regime or a more persistent inflation regime.