Simultaneous-Equation Estimation under Linear Restrictions with Application to New Zealand Meat Demand

A general approach for the estimation of cointegration vectors with linear restrictions is described. In the special case of zero restrictions, the cointegration relations of the paper are formally similar to the structural form of a traditional simultaneous equation model. The proposed estimation procedures require a conventional rank condition of identification but no exogeneity assumption. In place of exogenous variables there are series that are not cointegrated and can therefore describe the common trends in the system. The estimators of the paper are flexible and simple to use. They can be combined with several recent estimators developed for cointegration regressions which in the present context are formally similar to the reduced form of a simultaneous equation model. After the coefficient matrix of a cointegration regression has been estimated, the estimators of the paper can be obtained by simple generalized least squares. Both single equation estimators and more efficient system estimators are developed. The asymptotic distributions of the estimators are shown to be mixed normal so that Wald tests with asymptotic chi-square distributions under the null hypothesis can be obtained in the usual way. Convenient test procedures for checking the validity of overidentification restrictions are also provided.

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On the Cost of Approximate Specification in Simultaneous Equation Estimation

Econometrica ◽

10.2307/1909286 ◽

1961 ◽

Vol 29 (2) ◽

pp. 139 ◽

Cited By ~ 32

Author(s):

Franklin M. Fisher

Keyword(s):

Simultaneous Equation ◽

Simultaneous Equation Estimation ◽

The Cost

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The Linkage between CO2, FDI, Economic Growth and Value-Added: A European Perspective

10.21203/rs.3.rs-170999/v1 ◽

2021 ◽

Author(s):

Devesh Singh

Keyword(s):

Economic Growth ◽

Direct Investment ◽

Co2 Emission ◽

Western Europe ◽

Value Added ◽

Simultaneous Equation ◽

Northern Europe ◽

European Regions ◽

Simultaneous Equation Estimation ◽

Reducing Co2 Emission

Abstract This article aims to investigate the linkage among CO2 emissions, Foreign Direct Investment (FDI), economic growth, Gross Value Added (GVA) of different sectors namely agriculture, service, manufacturing, and resource extensive industries including construction sectors in four European regions Eastern Europe (EE), Southern Europe (SE), Northern Europe (NE) and Western Europe (WE). To do, this article uses the 3SLS simultaneous equation estimation during the period of 2000 to 2018. This study is the extension of seeing the challenges in policy implication in reducing CO2 emission in technologically rich economies. This article concluded that the causality among variables CO2 emission, economic growth, FDI, and all four sectors GVA is varied according to the regions. However, the CO2 emission has bidirectional causality with each industrial sector's GVA.

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Simultaneous Equation Estimation: Overview

International Encyclopedia of the Social & Behavioral Sciences ◽

10.1016/b978-0-08-097086-8.42172-0 ◽

2015 ◽

pp. 980-983

Author(s):

C.F. Christ

Keyword(s):

Simultaneous Equation ◽

Simultaneous Equation Estimation

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A Model of the Distribution of Branded Personal Products in Jamaica

Journal of Marketing Research ◽

10.1177/002224376800500402 ◽

1968 ◽

Vol 5 (4) ◽

pp. 362-368 ◽

Cited By ~ 3

Author(s):

John U. Farley ◽

Harold J. Leavitt

Keyword(s):

Decision Rules ◽

Simultaneous Equation ◽

Equation Model ◽

Policy Implications ◽

Simultaneous Equation Estimation ◽

Distribution Structure

A five equation model of the Jamaican distribution structure is fitted to data on four branded personal products. Decision rules appear oriented toward sales for retailers, wholesalers, importers, and manufacturers, and some policy implications for stimulating the structure are suggested. Problems associated with procedures for fitting sets of equations and examples of the effects of multi-collinearity on simultaneous equation estimation are discussed.

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