Recursive model

Updated: Aug 20, 2021

A version of the simultaneous equations model in which the matrix of coefficients of the current endogenous variables is triangular and there is no contemporaneous correlation of random errors across equations. These conditions ensure that all parameters in all equations in the system can be computed recursively, i.e. all equations are identified.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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