
doi: 10.2307/2526124
The main intention of this paper is a practical (from the applied point of view) and simple method of dealing with the problem of measurement errors in simultaneous equation models. As a result, the paper provides the conditions under which certain simultaneous equations models can be identified and estimated on a recursive equation-by-equation basis. These results are obtained at the expense of generality, but they are blessed with the advantage of clarity, which might help under certain conditions in applied econometric work. The paper starts out from a standard model of measurement errors in simultaneous equations systems. Then two sufficient conditions for separate equation identifications are stated and embodied in a relatively simple stepwise procedure for recursively checking equation-by-equation identification. The paper concludes with an illustration of the procedure by a permanent-income model of consumption.
structural equation, permanent-income model of consumption, problem of measurement errors, simultaneous equation models, identifications, errors in variables, recursive procedure, Applications of statistics to economics
structural equation, permanent-income model of consumption, problem of measurement errors, simultaneous equation models, identifications, errors in variables, recursive procedure, Applications of statistics to economics
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 8 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
