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By permission of MIT Press reproduced below is the full text of Orcutt G (1957) ‘A new type of socio-economic system’, Review of Economics and Statistics, 39(2), 116-123.
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The usual procedures for testing the significance of sample correlations between pairs of independently normally distributed series are not appropriate for testing sample correlations between pairs of autocorrelated series. We present sampling evidence supporting our hypothesis that the...
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