Whereas standard regression models force economic relationships or behavior to be fixed through time, stochastic parameter regression models allow relationships to vary slowly-without need for specification of the causes of that variation. The authors thoroughly examine the usefulness of the Kalman filter and state-space modeling in work with the stochastic parameter regression model. Learn more about \The Little Green Book\ - QASS Series! Click Here | Stochastic Parameter Regression Models by Paul Newbold, Paperback | Indigo Chapters