Linear econometric models in a limited information framework

N. Cappuccio
A simultaneous econometric model is named as incomplete when the number of the structural equations is less than the number of the endogenous variables. One usual way to make this type of model statistically tractable is that of adding an adequate number of equations in unconstrained reduced form in such a way to "complete" it. In this paper the statistical bases of this type of models are analysed. In particular the hypotheses, implicit to their...