Under a Choleski decomposition, the relationship among the reduced-form innovations is assumedto be recursive, so that if variables are ordered according to their place in the recursive chain, thereduced-form innovation in the first variable is assumed to be structural, while that in the second is astructural innovation in the second variable combined with a contemporaneous response to theP. Mishra, P. Montiel / Economic Systems 37 (2013) 187–216 189structural innovation in the first variable, that of the third is a structural innovation in the thirdvariable combined with a contemporaneous response to the structural innovations in the first twovariables, and so on
đang được dịch, vui lòng đợi..
