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STRUCTURAL EQUATION MODELLING

All econometric models covered so far have dealt with a single dependent variable and estimations of single equations. However, in modern world economics, interdependence is very commonly encountered. Several dependent variables are determined simultaneously, therefore appearing both as dependent and explanatory variables in a set of different equations. One of the assumptions of the CLRM states that the error term of an equation should be uncorrelated with each of the explanatory variables in this equation. If such a correlation exists, then the OLS regression equation is biased.The course on Structural Equation Modelling would cover this.

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The dropbox folder contains exercises, research papers and industry cases that will be covered.

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                    Download here.

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                   is a free, open-source, software. Download here.

               

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I have a blog titled review of different softwre packages. 

Module 0: An Introduction to Structural Equation Modelling

Module 1: An Introduction to Structural Equations and Reduced Form Equations

Module 2: Consquences of Ignoring Simultaniety

Module 3: The Identification Problem

Module 4: Estimating the Structural Equations

Module 5: Estimating the Over Identified Equations

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