Long Memory Models

Long memory models refer to statistical approaches used to analyze data that exhibit persistent correlations over long periods. Unlike models where past events quickly lose influence, long memory models account for the fact that distant past values can still significantly impact future outcomes. This is common in fields like finance and economics, where market behaviors or economic indicators can show patterns that fade slowly. These models help us better understand and predict complex systems by capturing the slow decay of dependencies over time, ensuring more accurate long-term forecasts.