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Journal Article

A Correspondence Principle for Simultaneous Equation Models

Franklin M. Fisher
Econometrica
Vol. 38, No. 1 (Jan., 1970), pp. 73-92
Published by: The Econometric Society
DOI: 10.2307/1909242
Stable URL: http://www.jstor.org/stable/1909242
Page Count: 20
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Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
A Correspondence Principle for Simultaneous Equation Models
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Abstract

This paper examines the implications of the position that simultaneous equation models are limiting approximations to nonsimultaneous ones as time lags go to zero, observations being on averages or sums of variables over time. Necessary conditions that a given simultaneous model can be the limit of such processes in a reasonable way are derived. This leads to tests on the specification of the model and of submodels thereof, which tests examine the interrelations between equations.

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