Income and Price Lags in Consumer-Demand Analysis

A new technique called "machine-intensive approach" is used to estimate the distributed lags in an investigation of long-run and short-run price and income elasticities. Consumer expenditure on 23 categories of goods in the U.S.A. is analysed by this technique which is simple in practice and makes considerable use of a high-speed digital computer. The author also examines the parameters of the estimated relations from the point of view of structural stability.