SOME ASPECTS OF THE DYNAMIC PROPERTIES OF ECONOMETRIC MODELS*

Recent efforts by several authors have resulted in the development of techniques for analytically describing the dynamic properties of linear stochastic difference equation models ¹ 1 For examples of this work see Chow [1]; Chow and Levitan [2] [3]; Howrey [8] [9]; Howrey and Kelejian [10] and Howrey and Klein [11].
. Since these techniques have not been extensively applied to econometric models and consequently are not generally familiar to economic modelers, the purpose of this paper is to summarize the techniques these researchers have developed and to illustrate them using a simple (and admittedly unrealistic) econometric model.