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Summary and Conclusions

Chapter

Summary and Conclusions

DOI link for Summary and Conclusions

Summary and Conclusions book

Summary and Conclusions

DOI link for Summary and Conclusions

Summary and Conclusions book

ByCharles Stockton Roehrig
BookEstimation of M-Equation Linear Models Subject to a Constraint on the Endogenous Variables

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Edition 1st Edition
First Published 1984
Imprint Routledge
Pages 7
eBook ISBN 9781351140522

ABSTRACT

There are two basic questions to be answered when constraint item (CI) estimation is being considered for a particular M equation modelling problem. First, how do the statistical properties of CI estimators compare to alternative estimators involving the full set of equations, and second, if CI estimation is to be used, what factors should determine the choice of the dependent variable to be left as the CI. The choice of the CI affects the ease of computation because it determines the coefficient constraints of the M-1 equation subset. The coefficient and error term constraints which were derived in the case of non-stochastic explanatory variables apply to identified simultaneous equations models. One factor in choosing the CI is the desire to minimize the number of ignored constraints and this can be accomplished by choosing the CI as that dependent variable whose equation contains the maximum number of explanatory variables.

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