The next notable development in the area of dynamic specification was the distributed
lag model. Although the idea of distributed lags had been familiar to economists through
the pioneering work of Irving Fisher (1930) on the relationship between the nominal
interest rate and the expected inflation rate, its application in econometrics was not
seriously considered until the mid 1950s. The geometric distributed lag model was used
for the first time by Koyck (1954) in a study of investment.