Building a Structural Model: Parameterization and Structurality

Mouchart, Michel ; Orsi, Renzo (2015) Building a Structural Model: Parameterization and Structurality. Bologna: Dipartimento di Scienze economiche DSE, p. 27. DOI 10.6092/unibo/amsacta/4406. In: Quaderni - Working Paper DSE (1039). ISSN 2282-6483.
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Abstract

A specific concept of structural model is used as a background for discussing the structurality of its parameterization. Conditions for a structural model to be also causal are examined. Difficulties and pitfalls arising from the parameterization are analyzed. In particular, pitfalls when considering alternative parameterizations of a same model are shown to have lead to ungrounded conclusions in the literature. Discussion of observationally equivalent models related to different economic mechanisms are used to make clear the connection between an economicall meaningful parameterization and an economically meaningful decomposition of a complex model. The design of economic policy is used for drawing some practical implications of the proposed analysis.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Mouchart, Michel
Orsi, Renzo
Keywords
structural model, recursive decomposition, exogeneity, causality, model identification, observationally equivalent models, structural invariance, misleading constraints
Subjects
ISSN
2282-6483
DOI
Deposit date
27 Nov 2015 12:26
Last modified
07 Jun 2017 08:04
URI

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