| Sumario: | A quarterly model of the Canadian demand/or imports 1956-72. This paper is to present the empirical results obtained on estimating the import demand function at a relatively disaggregated level using quarterly data for the period 1956--72, with special attention to the process of lagged adjustment. The adjustment lags are generally found to be statistically significant, suggesting that less than half of the adjustment between actual and long-run demand for imports occurs in the first quarter. Further, it is found that a considerable difference emerges on estimating over-all import demand elasticities at a disaggregated rather than an aggregated level. Finally, the hypothesis of the absence of money illusion in the aggregate import demand function of Canada was not rejected by the data.
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