Econometrica: Apr 1960, Volume 28, Issue 2
A Short Note on the Transmission of Shocks in Simultaneous Models
P. Norregaard RasmussenContrary 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