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From a VAR Model to a Structural Model, with an Application to the Wage-Price Spiral

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Monfort, A
Rabemananjara, R

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Abstract

In this paper a VAR model is considered as a general framework in which a structural model can be tested. We carefully describe the hypotheses defining a structural model; this leads us to discuss various notions such as: predeterminedness, non-causality, exogeneity, contemporaneous identification, overall identification, weak and strong structural forms, Then we propose a test procedure, based on the asymptotic least-squares method, which allows successive testing of each aspect of a structural model. This procedure is applied to the wage price spiral. Copyright 1990 by John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 5 (1990)
Issue (Month): 3 (July-Sept.)
Pages: 203-27
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Handle: RePEc:jae:japmet:v:5:y:1990:i:3:p:203-27

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