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parameters so that all relations in the primary form make
eo 1pso predictors.
The notation RFUE-system serves to emphasize that the
reduced form but in general not the primary form makes a set
of eo ipso predictors. In PFUE-svstems it is the other way
around (19).
(3) BEID- (bi-expectational interdependent) systems.
Here, to repeat, both the primary and the reduced form are
specified in terms of eo ipso predictors.
Illustrations ('7). Whereas an ID-system and the cor-
responding PFUE- and BEID-systems in general generate
three different stochastic processes, the following three models
have been designed so as to generate one and the same stoch-
astic process. Hence if a realization has been generated from
one of the models, the realization by itself cannot indicate from
which one of the three models it has been generated. The
process involves two endogenous variables p,, g, and no exogen-
ous variable, and it is stationary and Gauss-MARKOVIAN with
the following nine parameters,
‘61)
E,
(62)
- x
4
1°
A
(16) PFUE-systems are what I have earlier, Refs. 12, 28 and 30, called
implicit or conditional causal chain (CCC-) svstems. covering as special cases
circular and bicausal chain systems.
(7) Models (65)-(67) and (68)-(70) are quoted from Ref. 30. I am indebted
to Dr. LYTTKENS for pointing out an erratum in Ref. 30, p. 394, where
the relation that corresponds to (69 ¢) is wrongly stated as E(v;, vi. =) =O.
The erratum does not affect the statement that the three models there
considered define one and the same stochastic process, but it does destroy
the Markov character of model (68)-(70). For example in (66b) we have
E(qlp.1) = Elg.lPr-1, Pi2G. 2 Dr as
but in general not so in (7ob)
Wold - pag. 33