What are the types of turning points in ARDL models?

In Autoregressive Distributed Lag (ARDL) models, there are typically three types of turning points that can be detected. The first type is a structural break, which is a sudden and permanent shift in the relationship between variables. The second type is a smooth break, where the relationship gradually changes over time. The third type is a single structural shift, where there is only one change in the relationship. These turning points are important to identify as they can have significant implications for forecasting and policymaking.

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