Distributed Lags

  • Thomas B. Fomby
  • Stanley R. Johnson
  • R. Carter Hill


Economic data are generated by systems of economic relations that are dynamic, stochastic, and simultaneous. In this chapter we consider dynamic aspects of single equation models. Distributed lag models are those that contain independent variables that are observed at different points in time. They are motivated by the fact that effects of changes in an independent variable are not always completely exhausted within one time period but are “distributed ” over several, and perhaps many, future periods. These lagged effects may arise from habit persistence, institutional or technological constraints. They may also be the consequence of how individual decision maker’s expectations are linked with experience. For more extensive justification of dynamic models see Cagan (1956), Nerlove (1956), and Muth (1961)


American Statistical Association Polynomial Degree International Economic Review Single Equation Model Partial Adjustment Model 
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Copyright information

© Springer Science+Business Media New York 1984

Authors and Affiliations

  • Thomas B. Fomby
    • 1
  • Stanley R. Johnson
    • 2
  • R. Carter Hill
    • 3
  1. 1.Department of EconomicsSouthern Methodist UniversityDallasUSA
  2. 2.The Center for Agricultural and Rural DevelopmentIowa State UniversityAmesUSA
  3. 3.Department of EconomicsLouisiana State UniversityBaton RougeUSA

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