Study week on the econometric approach to development planning

Bibliographic data

Monograph

Identifikator:: 1824422792

URN:: urn:nbn:de:zbw-retromon-217476

Document type:: Monograph

Title:: Study week on the econometric approach to development planning

Place of publication:: Amsterdam [u.a.]

Publisher:: North-Holland Publ. Co. [u.a.]

Year of publication:: 1965

Scope:: XLVII, 1259 S.; graph. Darst.

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Dynamic structure and estimation in economy-wide econometric models / FranklinM. Fisher, Massachuetts Institute of Technology - Cambridge, Mass. - U.S.A.

Collection:: Economics Books

414 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA may be more willing to assume no correlation between con- temporaneous disturbances in two different aggregate sectors than between disturbances in any two single equations. A si- milar assumption may be even more attractive when the disturbances in question are from different time periods as will be seen below. Thus also, the dynamic system may be thought close to decomposability when broad sectors are in view and feedbacks within sectors explicitly allowed. If such assumptions are approximately satisfied, then the inconsistencies involved in the use of current and lagged endogenous variables as pre- determined in higher-numbered sectors will be small (*0). Nevertheless, the assumption of no correlation between con- temporaneous disturbances from different sectors, the assump- tion of no serial correlation in the disturbances, and the as- sumption of decomposability of the dynamic system all seem rather strong ones to make. If none of these assumptions is in fact even approximately made, then the use of current endo- genous variables as instruments in higher-numbered sectors leads to non-negligible inconsistencies. We shall show, how- ever, that this need not be true of the use of lagged endogenous variables in higher-numbered sectors under fairly plausible assumptions as to the process generating the disturbances. We thus turn to the question of the use of lagged endogenous va- riables, assuming that A is known to be at least nearly block- triangular. 5.4. Reasonable Properties of the Disturbances The problems which we have been discussing largely turn on the presence of common omitted variables in different equa- tions and on the serial correlation properties of the disturbances. It seems appropriate to proceed by setting up an explicit model ((#) See Frsurr [8]. The theorems involved are generalizations of the: Proximity Theorem for recursive systems. ‘61 Fisher - pag. 30

Access restriction

Copyright

fullscreen: Study week on the econometric approach to development planning

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation