Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Oct, 1966, Volume 34, Issue 4

Aggregate Koyck Functions<828:AKF>2.0.CO;2-R
p. 828-832

G. O. Bierwag, M. A. Grove

If one assumes (i) that individual economic units predict the values of random variables within a model by use of adaptive expectations functions of the type due to Koyck, (ii) that the parameters of these functions differ among individual economic units, and (iii) that "market expectations" are a weighted combination of individual expectations, then the function representing aggregate behavior is not a Koyck function, but rather some other function belonging to the general class of Pascal distributed lag functions.

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