Other forms of dynamic specification considered in the literature included the partial
adjustment model (Nerlove, 1958b; Eisner and Strotz, 1963) and the multivariate flexible
accelerator model (Treadway, 1971) and Sargan’s (1964) work on econometric time series
analysis which formed the basis of error correction and cointegration analysis that followed
next. Following the contributions of Champernowne (1960), Granger and Newbold (1974)
and Phillips (1986) the spurious regression problem was better understood, and paved
the way for the development of the theory of cointegration. For further details see Section
8.3 below.