On the interpretation of policy effects from estimates of simultaneous systems of equations

C-Tier
Journal: Applied Economics
Year: 1998
Volume: 30
Issue: 8
Pages: 995-999

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The purpose of this paper is threefold: first, we warn analysts against the use of structural coefficient estimates alone for deducing quantitative inferences concerning many policy experiments. Second, we offer a potential solution to the problem by proposing a mutatis mutandis approach to deducing the 'full effect' of a policy change on the endogenous variables of the model. Finally, we show that this approach yields consistent estimates of the reduced form parameters, the true solution to the difficulty. An illustration is provided.

Technical Details

RePEc Handle
repec:taf:applec:v:30:y:1998:i:8:p:995-999
Journal Field
General
Author Count
2
Added to Database
2026-01-25