Andrew J. Buck

Temple University

United States

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Structural Models, Information and Inherited Restrictions
Abstract
The derived structural estimates of the system βY=γZ|δU impose identifying restrictions on the reduced form estimates ex post. Some or all of the derived structural estimates are presented as evidence of the model’s efficacy. In fact, the reduced form inherits a great deal of information from the structure’s restrictions and hypothesized sign patterns, limiting the allowable signs for the reduced form. A method for measuring a structural model’s statistical information content is proposed. Further, the paper develops a method for enumerating the allowable reduced form outcomes which can be used to falsify the proposed model independently of significant coefficients found for the structural relations.
Buck, J. A., and G. M. Lady, "Structural Models, Information and Inherited Restrictions", Economic Modelling, 28, 2820-2831.
Authors: Buck
Lady
Coders: Buck
Lady
Last update
07/18/2012
Ranking
24
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28
Structural Sign Patterns and Reduced Form Restrictions
Abstract
This paper reconsiders the degree to which the signpatterns of hypothesized structural arrays limit the possible outcomes for the signpattern of the corresponding estimated reducedform. The conditions under which any structuralrestrictions would apply were believed to be very narrow, rarely found to apply, and virtually never investigated. As a result, current practice does not test the structural hypothesis in terms of the comparison of the estimated reducedform and the permissible reducedformsignpatterns. This paper shows that such tests are always possible. Namely, that the signpatterns of the hypothesized structural arrays always limit the signpatterns that can be taken on by the estimated reducedform. Given this, it is always possible to falsify a structural hypothesis based only upon the signpattern proposed. Necessary conditions, algorithmic principles, and examples are provided to illustrate the analytic principle and the means of its application.
Buck, J. A., and G. M. Lady, "Structural Sign Patterns and Reduced Form Restrictions", Economic Modelling, 29, 462-470.
Authors: Buck
Lady
Coders: Buck
Lady
Last update
07/18/2012
Ranking
23
Runs
N.A.
Visits
20