A model in which the current value of one set of variables determines the current value of another, whereas previous (or lagged) values of the latter determine the current values of the former. A series of independent models to deal with <a href="search.pl?p=causal chains">causal chains</a>. A simple example of a recursive model is:<o:p></o:p><p class="MsoNormal" style="margin-top:12.0pt;margin-right:0in;margin-bottom:
0in;margin-left:2.5in;margin-bottom:.0001pt"><i><span style="font-size:10.0pt">Y<sub>t</sub> 
= a + bX<sub>1</sub></span></i></p>
<p class="MsoNormal" style="margin-left:2.5in"><i>
<span style="font-size:10.0pt">X<sub>t</sub> = c + dY<sub>t-1</sub></span></i></p>
</P>