The Use of Distributed Lag Models Containing Two Lag Parameters in the Estimation of Elasticities of Demand

JAMES E. MARTIN University of Maryland HIS PAPER (1) presents the derivation of a nonlinear distributed lag model containing two lag parameters, (2) considers the statistical problems involved in the estimation of this model, and (3) presents comparisons based upon four-week observations of the estimates of the short-run and long-run elasticities of the demand for fryers obtained from this model with the elasticity estimates obtained from the more conventional Koyck' or Nerlove2 distributed lag models.