Estimation of Simultaneous Equation Models with Error Components Structure

Economists can rarely perform controlled experiments to generate data. Existing information in the form of real—life observations simply has to be utilized in the best possible way. Given this, it is advantageous to make use of the increasing availability and accessibility of combinations of time—series and cross—sectional data in the estimation of economic models. But such data call for a new methodology of estimation and hence for the development of new econometric models. This book propo...