DCM for induced responses aims to model coupling within and between frequencies that are associated with linear and non-linear mechanisms respectively. This is a further extension of DCM for ERP/ERF to cover the spectrum dynamics as measured with the electroencephalogram (EEG) or the magnetoencephalogram (MEG). The model parameters encode the frequency response to exogenous input and coupling among sources and different frequencies. One key aspect of the model is that it differentiates between linear and nonlinear coupling; which correspond to within and between frequency coupling respectively. Furthermore, a bilinear form for the state equations can be used to model the modulation of connectivity by experimental manipulations.

C. Chen, S. Kiebel, K. Friston. Dynamic causal modelling of induced responses. NeuroImage, 41(4):1293-1312, 2008.
 
These descriptions of the new features are taken from the SPM8 Release Notes
 
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