The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jan, 1969, Volume 37, Issue 1
https://doi.org/0012-9682(196901)37:1<95:SNM>2.0.CO;2-G
p. 95-106
L. R. Klein, R. S. Preston
The variance of solutions to stochastic linear dynamic systems tends to a finite limit if the system is damped. Limit cycles are possible in linear systems, but the corresponding solutions would have increasing variance in the stochastic case. On the other hand, nonlinear systems with limit cycles may have solutions with bounded variance in the stochastic case. A numerical example illustrating the limit cycles of Kaldor's nonlinear trade cycle model is shown to have solutions with bounded variance when the system is subjected to random shocks. The variance series is periodic with one-half the cyclical duration of the mean series. The amplitude of the mean series decreases over time. In a linear system, the mean series would have the same cyclical pattern as the nonstochastic solution.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
