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Estimating Structural Change in Linear Simultaneous Equations

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Author Info
Huang Weihong
Zhang Yang

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Abstract

Tests and estimation for changes in the coefficients of linear regression models, particularly the analysis of covariance and the Chow tests, are well known to econometricians and are widely used. This paper demonstrates that analogous estimation can also be constructed in simultaneous equation models when equations are estimated by common estimator like OLS, 2SLS and LIML. In the present paper, we discuss the problem of estimating structural changes in equations from a simultaneous structural economic model. We consider the case of possible multiple switching of the parameters at unknown sample points and investigate the simultaneous estimation of multiple structural changing points along with the regression coefficients within subdomains. A regressive segmentation method will be used which is based on the principle of dynamic programming and allow global minimizers to be obtained using a number of sums of squared residual

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 110.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:ausm04:110

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Related research
Keywords: Structural Change; Simultaneous Equations;

Find related papers by JEL classification:
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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This page was last updated on 2009-12-2.


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