Richard Stone: System

Richard Stone was British economist, Nobel Memorial Prize winner. Explore interesting quotes on system.
Richard Stone: 22 quotes0 likes

“In the second place, a system would involve more variables than those which may be supposed to enter into demand relationships, and so the preliminary work of estimating the necessary time series would also be increased. In the third place, in the simultaneous method of estimation the estimates of the original parameters come to depend on most of the remaining estimates, and so it is quite likely that they will have large sampling variances.”

Richard Stone

Studies in the National Income and Expenditure of the United Kingdom, 1954

“The object of this paper is fivefold. The first objective is to derive a practical system of demand equations which possess properties usually considered desirable from the standpoint of elementary economic theory. The second is to consider the statistical problems involved in applying the system of equations. The third is to analyse the pattern of demand for consumers' goods in terms of this system on the basis of annual data relating to the United Kingdom over the years 1920-38. The fourth is to compare the results of this system, and systems like it, with the actual state of demand in 1900. Finally, the fifth is to compare the post-war structure of demand with what might be expected from the inter-war relationshipp under free-market condition.”

Richard Stone

Stone, Richard. " Linear expenditure systems and demand analysis: an application to the pattern of British demand http://www.jstor.org/discover/10.2307/2227743?uid=3738736&uid=2&uid=4&sid=21104302232953." The Economic Journal (1954): 511-527.

“In 1945, the war ended and I was chosen to be the first director of the newly-established Department of Applied Economics in Cambridge. Between leaving the government service and taking up my new post, I had a break of about three months which I spent at the Institute of Advanced Study in Princeton. I intended to use my time there writing up my ideas on a social accounting system for the measurement of economic flows, a thing I had wanted to do for years but had not had time for during the war. What happened was that, in Princeton, I met Alexander Loveday, the Director of Intelligence at the League of Nations, who wanted a paper on the problems of defining and measuring the national income and related totals for consideration by the League's Committee of Statistical Experts. He asked me if I would undertake the work and naturally I accepted. I soon had a memorandum ready and it was discussed in Princeton while I was still there by a subcommittee convened by Loveday. Their report was eventually published by the United Nations in Geneva in 1947 under the title, Measurement of National Income and the Construction of Social Accounts, with my memorandum as an appendix.”

Richard Stone

"Richard Stone - Biographical," 1984

“In the first place, economic theory provides a comparatively detailed specification of the demand relationships for individual consumers' goods, but is by no means so specific about the system into which these relationships fit. It would be possible to close the system in very many ways, and the precise way selected would influence the regression estimates in a model involving simultaneous equations.”

Richard Stone

Source: Studies in the National Income and Expenditure of the United Kingdom, 1954, p. 295; as cited in: John Chipman (2013) Advanced Econometric Theory, p. 275