Let Xt and Yt denote two random variables measured at time t, with observed values xt and yt. A simple example of a recursive model is provided by
where E denotes expected value. The present value of Y depends upon the present value of X, but that value depends upon the previous value of Y.
A version of the simultaneous equations model in which the matrix of coefficients of the current endogenous variables is triangular and there is no contemporaneous correlation of random errors across equations. These conditions ensure that all parameters in all equations in the system can be computed recursively, i.e. all equations are identified.
- bond order
- Bond oscillation
- bond-rating agency
- Bond, William Cranch
- Bond, William Cranch (1789–1859)
- Bond’s Work Index
- bone
- bone black
- bone marrow
- bone morphogenetic protein
- bone seeker
- Bonferroni, Carlo Emilio (1892–1960)
- Bonferroni inequality
- Bonferroni t-test
- Bonhoeffer, Dietrich (1906–45)
- Boniface VIII (1235–1303)
- Bonner Durchmusterung
- Bonner, James Frederick
- Bonner, Yelena
- Bonnet, Charles
- Bonnie Prince Charlie
- bonsai
- bonus
- bonus issue
- bony fish