ISSN:
1572-9974
Keywords:
realities of econometric model building
;
causality
;
random coefficient models
;
nonlinear programming
Source:
Springer Online Journal Archives 1860-2000
Topics:
Computer Science
,
Economics
Notes:
Abstract This paper states four realities of econometric model buildingand shows that an econometric model can be causal only if theinterpretations given to its coefficients are consistent withthese realities. A numerically stable algorithm for estimatingsuch a model subject to equality and inequality constraints onthe model parameters is presented. This algorithm is designed insuch a way that it can be applied even when the matrix ofobservations on the model's independent variables and thecovariance matrix of the model's errors are deficient in rank.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1008709704755
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