Advertisement

Identification

  • Thomas B. Fomby
  • Stanley R. Johnson
  • R. Carter Hill

Abstract

Study of the identification problem is a precursor to the estimation problem in simultaneous equations. When the number of observations exceeds the number of exogenous variables in the model, ordinary least squares provides a method for consistently estimating the reduced form parameters via \( \hat \Pi = \left( {X'X} \right)^{ - 1} X'Y \), as shown in the previous chapter. Though II can be consistently estimated, such information cannot always be used to infer values for the structural parameters Γ and △. This is the essence of the identification problem. Does the investigator have enough available information to make statistical statements concerning the structure of a given simultaneous equations model?

Keywords

Identification Problem Null Space Simultaneous Equation Covariance Restriction Supply Curve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Bowden, R. (1973). The theory of parametric identification. Econometrica, 41, 1069–1074.CrossRefGoogle Scholar
  2. Fisher, F. (1966). The Identification Problem in Econometrics. New York: McGraw-Hill.Google Scholar
  3. Kelly, J. (1975). Linear cross-equation constraints and the identification problem. Econometrica, 43, 125–140.CrossRefGoogle Scholar
  4. Koopmans, T. (1953). Identification problems in economic model construction. In Studies in Econometric Method. Edited by W. Hood and T. Koopmans, New York: Wiley. Chapter II.Google Scholar
  5. Koopmans, T. and Hood, W. (1953). The estimation of simultaneous linear economic relationships. In Studies in Econometric Method. Edited by W. Hood and T. Koopmans. New York: Wiley. Chapter VI.Google Scholar
  6. Koopmans, T., Rubin, H., and Leipnik, R. (1950). Measuring the equation systems of dynamic economics. In Statistical Inference in Dynamic Economic Models. Edited by T. Koopmans. New York: Chapter 2.Google Scholar
  7. Richmond, J. (1974). Identifiability in linear models. Econometrica, 42, 731–736.CrossRefGoogle Scholar
  8. Rothenberg, T. (1971). Identification in parametric models. Econometrica, 39, 577–592.CrossRefGoogle Scholar
  9. Wegge, L. (1965). Identifiability criteria for a system of equations as a whole. Australian Journal of Statistics, 67–77.Google Scholar

Copyright information

© Springer Science+Business Media New York 1984

Authors and Affiliations

  • Thomas B. Fomby
    • 1
  • Stanley R. Johnson
    • 2
  • R. Carter Hill
    • 3
  1. 1.Department of EconomicsSouthern Methodist UniversityDallasUSA
  2. 2.The Center for Agricultural and Rural DevelopmentIowa State UniversityAmesUSA
  3. 3.Department of EconomicsLouisiana State UniversityBaton RougeUSA

Personalised recommendations