Avoiding Arbitrary Exclusion Restrictions Using Ratios of Reduced-Form Estimates
We show how to obtain coherent structural-form (SF) exclusion restrictions using the reduced-form (RF) parameter ratios. It will be shown that an over-identified SF corresponds to a group of regressors sharing the same RF ratio value; those regressors should be excluded jointly from the SF. If there...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2007
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/soe_research/313 https://ink.library.smu.edu.sg/context/soe_research/article/1312/viewcontent/RFratio2.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |