Econometrica: Apr 1960, Volume 28, Issue 2
A Short Note on the Transmission of Shocks in Simultaneous Models
https://doi.org/0012-9682(196004)28:2<364:ASNOTT>2.0.CO;2-F
p.
364-367
P. Norregaard Rasmussen
Contrary to arguments advanced by others, it is shown in this note that, in general, a stochastic variation for a given relationship need not be accentuated in simultaneous models. Any statement to that effect must be based on a theory about shocks.Log In To View Full Content