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Isolation of Lagged Economic Responses
Author(s) -
Martin James E.
Publication year - 1967
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1237075
Subject(s) - isolation (microbiology) , economics , biology , microbiology and biotechnology
A procedure is illustrated for isolating distributed lags between two selected subsets of independent variables and the dependent variable in demand equations. The procedure is applied to two equations representing the demand for pork. The results of the analyses suggest that conventionally formulated distributed lag models, i.e., models containing the assumption that all variables possess the same lag distribution, not only may produce biased elasticity estimates but also may frequently lead to incorrect interpretations of the dynamic relationship between changes in per capita income and changes in consumption.