Econometrica: Apr 1960, Volume 28, Issue 2
Recursive vs. Nonrecursive Systems: An Attempt at Synthesis (Part I of a Triptych on Causal Chain Systems)
H. O. A. Wold, Robert H. StrotzThis paper, which in part serves as a common introduction to the two papers following in this issue, attempts to define the meaning of the "casual interpretability of a parameter" in a system of simultaneous linear relationships. It attempts, moreover, to expound a basis for interpreting the parameters of a nonrecursive or interdependent system casually. This is done in terms of an underlying causal chain system to which the interdependent system is either an approximation or a description of the equilibrium state.
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