The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Apr, 1961, Volume 29, Issue 2
https://doi.org/0012-9682(196104)29:2<139:OTCOAS>2.0.CO;2-X
p. 139-170
Franklin M. Fisher
This paper considers the question of whether simultaneous equation estimation is possible in view of the fact that specification errors are always made in the construction of models which are supposed only to hold approximately. It is shown that, so far as consistency is concerned, good approximations give good results, but that different estimators have different sensitivities to specification errors of the types considered. It follows that the choice of an estimator may depend crucially on its properties in such situations. The problem leads naturally to a consideration of the positions of T. C. Liu and H. Wold on the prevalence of underidentification and recursiveness, respectively. The concept of recursiveness is generalized as is the Proximity Theorem, and it is shown that a position intermediate between the two just mentioned is highly tenable, such a position permitting the use of simultaneous equation estimators. The whole problem turns out to be related to the question of almost unilateral coupling of dynamic systems and some conjectures are presented on the possibility of generalizing the recent aggregation and partition theorem of H. Simon and A. Ando.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
