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The Review of Economics and Statistics Vol. 44 No. 1 1962

A Small Model of Semi-Annual Employment in the United States

Joel Cord

Abstract

T HE employment model described in this article was fitted to semi-annual data covering the years 1947 through 1959. The model is believed of interest for the following reasons: i. It allows a good fit for the employment function over the sample period and it produces a rather successful forecast for the first half of I960. 2. Because the employment function contains two interdependent variables, the method of two-stage least squares was applied in its estimation. The advantage of this method from the standpoint of forecasting is demonstrated. 3. Finally, in the construction of the model all but one of the predetermined variables is lagged. Consequently, the reduced form of the model is highly suited for forecasting purposes.'

DOI
10.2307/1926623
Volume
44
Issue
1
Pages
58
Sources
openalex crossref

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