The central idea of the business cycle is of a pervasive cyclical movement of economic indicators. This paper shows that the concept of such simultaneous movements can be given a precise meaning by performing a principal component analysis of spectral density matrices or, with a different shade of meaning, coherence matrices. It suggests also a new method of computing spectral approximations for models that are nonlinear in their variables. The methods are applied to the Klein-Goldberger model for the United States.

IN THEIR PAPER [1] with the above title, Blattberg and Sargent have suggested a method for estimating regression parameters when disturbances are generated by a symmetric stable law. This procedure was originally suggested by John Wise [4]. Wise arrived at this estimator by confining attention to the class of linear unbiased estimators and minimizing the scale parameter. He also suggested that his procedure might be considered as a generalization of the classical least squares procedure which fails when the second moments of the disturbances do not exist. Blattberg and Sargent have compared various estimators by using simulated data. The main purpose of this note is to show that the procedure suggested by Wise and Blattberg and Sargent has an optimal property, namely that it yields an estimator that has minimum mean absolute error among the class of all linear unbiased estimators. The model is the well-known linear regression model given by

[An exact discrete model is derived from a recursive model consisting of a set of rth order stochastic linear differential equations with constant coefficients such that observations generated at equidistant points of time by the differential system satisfy the discrete model irrespective of the length of sampling interval. The difficulty of estimating the exact model subject to a priori restrictions makes it necessary to approximate the differential system by a non-recursive discrete model that maintains the structural form. This discrete model has a moving average disturbance term of order r - 1, but the co-variance function of this process is approximated by a function that is independent of the parameters of the continuous model. The eigenvalues and eigenvectors of the approximations to the differential system as well as their asymptotic variance matrices are also derived but, like the approximate asymptotic variance matrices of the parameter estimates, these variances are about biased probability limit]

Journal Article On Differential Savings Propensities in Two-Class Growth Models Get access Ronald Britto Ronald Britto University of California, Los Angeles Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 4, September 1972, Pages 491–494, https://doi.org/10.2307/2296517 Published: 01 September 1972

[An attempt is made to set out the implications of the log transformation on the stochastic properties of the model, which are postulated in the original multiplicative relationship. The estimation of the mean of the dependent variable, given some vector of explanatory variables, is accomplished by minimizing the mean square error within a certain class of estimators allowing for biased estimators, assuming known variance. The resulting estimator is modified in order to face the problem of unknown variance. This modified estimator turns out to dominate (in MSE) the least-squares, the ML, and the MVU Bradu and Mundlak estimator.]

Ran Mosenson, Emmanuel Dror; A Solution to the Qualitative Substitution Problem in Demand Theory12, The Review of Economic Studies, Volume 39, Issue 4, 1 S

This book is a report on a research project in which computer simulation techniques were used to test the rationality of alternative methods of priee calculation in industrial firms.Most of the work was done at the Norwegian School of Economies, with the aid of the Computation Centre of the University of Bergen.Drawing as it must from the various fields of economies, accounting, mathematics, statisties, and computer science, the book is partlya product of a rich interdisciplinary academic milieu, in which I am grateful for having had the opportunity to work.Its defects, however, may be attributed to me.The project was financed by grants from AfS Norsk Varekrigsforsikrings Fond and

This article presents an analysis of Accounting Principles Board Statement 4. The statement attempts to provide a structure that can be used in approaching some of the vexing practical problems that have been plaguing the profession in recent years. The objectives set forth in the statement are interesting, aspire to completeness and could lead to considerable change in financial accounting in the future. And the description of present generally accepted accounting principles (GAAP) is the first description of our present situation that is both systematic and authoritative. Because of these and other features and because it is ambitious in scope theorist should find much in Statement to analyze and discuss. The developmental purpose is to pro vide a basis for guiding the future development of financial accounting. The statement has implicit purposes as well as explicit ones. It sets out a frame work that the Board wants to test in the marketplace of ideas. The statement also sets out a tentative list of objectives of financial accounting that needs testing and development in the crucible of heated discussion. Finally, the statement serves the important function of calling the Board it- self back to a more fundamental approach.