In this paper is presented a simultaneous equation model that is non-triangular, its disturbances having a non-diagonal covariance matrix, and yet is causal and recursive, and whose underlying structural relations are also causal. The model is put forth as a counter-example to the Wold-Strotz claim that only triangular systems can be recursive and causal.
MLA
Basmann, R. L.. “The Causal Interpretation of Non-Triangular Systems of Economic Relations.” Econometrica, vol. 31, .no 3, Econometric Society, 1963, pp. 439-448, https://www.jstor.org/stable/1909985
Chicago
Basmann, R. L.. “The Causal Interpretation of Non-Triangular Systems of Economic Relations.” Econometrica, 31, .no 3, (Econometric Society: 1963), 439-448. https://www.jstor.org/stable/1909985
APA
Basmann, R. L. (1963). The Causal Interpretation of Non-Triangular Systems of Economic Relations. Econometrica, 31(3), 439-448. https://www.jstor.org/stable/1909985
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