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A random coefficient simultaneous equation system with an application to direct foreign investiment by French firms

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Abstract

In this paper, a random coefficient simultaneous equation system is used to study Direct Foreign Investment by French firms. The problem of formulating and estimating a random coefficient system is discussed at first in a general setting and an easily implementable solution is proposed. The estimating procedures are then applied to a panel of 64 plants belonging to 17 French firms over the period 1976–1982.

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Balestra, P., Negassi, S. A random coefficient simultaneous equation system with an application to direct foreign investiment by French firms. Empirical Economics 17, 205–220 (1992). https://doi.org/10.1007/BF01192484

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