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I've been searching for answer, but I can't find a clear cut one. From what I understand it says that, in the realistic model there are no exogenous variables? Or does it say that there can be no clear cut identification of exogenous and endogenous variables?

Link: http://www.wifa.uni-leipzig.de/fileadmin/user_upload/iew-vwl/OEK-Lehre/tsa_winter2011/tsa01.pdf

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  • $\begingroup$ Hi there, and welcome to Econ.SE. This question, as is, needs some more information given to the readers. An explanation and source/citation for what Sims' critique is would be appreciated, for starters. $\endgroup$ – Kitsune Cavalry Sep 3 '17 at 23:43
  • $\begingroup$ @KitsuneCavalry that's what I'm hoping to find out. $\endgroup$ – James Ston Sep 3 '17 at 23:50
  • $\begingroup$ In that case, a link to a study where you heard of this idea would be appropriate. $\endgroup$ – Kitsune Cavalry Sep 3 '17 at 23:56
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    $\begingroup$ Read Sim's seminal paper introducing vector autoregression. $\endgroup$ – 123 Sep 4 '17 at 1:04
  • $\begingroup$ This question could be improved by included a quotation from the linked slides. The question posted on this site is meant to be permanent and outside links tend to die over time. $\endgroup$ – jmbejara Sep 4 '17 at 23:49

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