Journal Article The Demand Approach to Economic Development Get access H. Myint H. Myint Oxford and Rangoon Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 27, Issue 2, February 1960, Pages 124–132, https://doi.org/10.2307/2296134 Published: 01 February 1960

Journal Article Walras' Tâtonnement in the Theory of Exchange Get access H. Uzawa H. Uzawa Stanford Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 27, Issue 3, June 1960, Pages 182–194, https://doi.org/10.2307/2296080 Published: 01 June 1960

This paper, which in part serves as a common introduction to the two papers following in this issue, attempts to define the meaning of the interpretability of a parameter in a system of simultaneous linear relationships. It attempts, moreover, to expound a basis for interpreting the parameters of a nonrecursive or interdependent system causally. This is done in terms of an underlying causal chain system to which the interdependent system is either an approximation or a description of the equilibrium state. OVER THE PAST fifteen years there has been an extended discussion of the meaning and applicability of nonrecursive as distinct from recursive systems in econometrics, and throughout this discussion there has been a marked divergence of views as to the merits of the two types of models. It is not the purpose of this note to extend that controversy further, but rather to attempt a constructive statement of the relationship betweenthe two approaches and the circumstances under which each is applicable. We assume that the reader is generally familiar with the past discussion' and that it will suffice here simply to recall that a recursive, or causalchain, system has the formal property that the coefficient matrix of the non-lagged endogenous variables is triangular (upon suitable ordering of rows and columns) whereas a nonrecursive, or interdependent, system is one for which this is not the case. While the triangularity of the coefficient matrix is a formal property of recursive models, the essential property is that each relation is provided a causal interpretation in the sense of a stimulus-response relationship. The question of whether and in what sense nonrecursive systems allow a causal interpretation is the main theme of this paper.

Journal Article A Note on Social Overhead and a Dynamic Analysis of Industry Get access Arthur H. Cole Arthur H. Cole Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 74, Issue 3, August 1960, Pages 413–415, https://doi.org/10.2307/1883058 Published: 01 August 1960