A copy of this work was available on the public web and has been preserved in the Wayback Machine. The capture dates from 2017; you can also visit the original URL.
The file type is `application/pdf`

.

##
###
Application of Simultaneous Equation in Finance Research
[chapter]

2010
*
Handbook of Quantitative Finance and Risk Management
*

A. Introduction Empirical finance research often employs a single equation for estimation and testing. However, single equation rarely happens in the economic or financial theory. Using OLS method to estimate equation(s) which should otherwise be treated as a simultaneous equation system is likely to produce biased and inconsistent parameter estimators. To illustrate, let's start with a simple Keynesian consumption function specified as the follow: Where t C is the consumption expenditure at

doi:10.1007/978-0-387-77117-5_86
fatcat:lk2f6razlbdzxna6pjkjegsp3q