Studies of the Australian economy by Strong and Tan (1991)and Mayadunne,Evans and Inder (1995)suggest that research into the Australian economy consistently identifies substantial levels of persistence in economic growth,suggesting the traditional model of trend plus cyclical movements for economic growth may be invalid.

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A substantial body of theory has accumulated suggesting economic growth measures appear to follow a long memory process.Nelson and Plosser (1982)provide the initial impetus to this research,while research into the Australian economy includes Strong and Tan (1991)and Mayadunne,Evans and Inder (1995).The results consistently identify substantial levels of persistence in economic growth,suggesting the traditional model of trend plus cyclical movements for economic growth may be invalid.

Studies of the Australian Economy by Strong and Tan (1991)and