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


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?


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.


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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

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