Rank condition

The rank condition is a necessary and sufficient condition for a set of simultaneous equations in an econometric system to allow identification of all its parameters from the estimated coefficients of the reduced form equations. The condition simply requires the matrix of all structural equations of the model to have full rank.

See alsoEdit

Further readingEdit

  • Asteriou, Dimitrios; Hall, Stephen G. (2011). Applied Econometrics (Second ed.). Basingstoke: Palgrave Macmillan. p. 395. ISBN 978-0-230-27182-1.
  • Chow, Gregory C. (1983). Econometrics. New York: McGraw-Hill. pp. 117–121. ISBN 0-07-010847-1.
  • Maddala, G. S.; Lahiri, Kajal (2009). Introduction to Econometrics (Fourth ed.). New York: Wiley. pp. 362–365. ISBN 978-0-470-01512-4.
  • Sargan, Denis (1988). Lectures on Advanced Econometric Theory. Oxford: Basil Blackwell. pp. 28–30. ISBN 0-631-14956-2.