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ABSTRACT
Thischapterisorganizedasfollows.TheSTRmodelisdefinedanditspropertiesandpotentialinapplicationsarediscussedinSectionJI.SectionIllconsiders statisticalinferenceinSTRmodels.Thisincludestestinglinearitywhichshould precedeanynonlinearmodeling.Themodelingcycleconsistingofspecification,estimation,andevaluationofSTRmodelsisdescribedinSectionIV.SectionVcontainsanapplicationtoaU.K.housepriceequationconsideredinHendry(1984), andSectionVIconcludes.
