Complex lag distributions in investment processes revealed, changing economic forecasting forever.
Investment processes involve different time lags due to various factors like types of goods, purchasing firms, and sources of supply. The distribution of these lags can change over time because of shifts in investment practices and demand. Researchers have developed advanced methods to estimate these lag distributions in regression analysis. They have looked at stable and variable lag distributions to understand how different factors affect investment. When estimating investment functions, multiple variables are considered, but simpler cases can be studied with just one variable.