Paradox of identification, Game Theory

Discussion in the preceding section suggests that if we want to measure a given hnction belonging to a simultaneous-equations model, the hnction must be fairly stable over the sample period, that is, it must shift within a smaller range as compared with other relationships of the same model. In the last section we have shown that we can measure the supply function when it is fairly stable and the demand is shifting similarly we can measure the demand hnction if it is fairly stable while the supply hnction shows adequate variability. It can happen when the factor causing shift in one particular function is absent in another function. In other words, in order to identify the demand function, some factors absent from it but included in 'the supply function (or in other relations of the system) must be changing over the period of the sample.

Similarly, we can trace the supply function if it is fairly stable while demand shows enough variability. This implies that if the supply function is to be identified, some variables absent from it but affecting the demand function must be changing.

Posted Date: 4/4/2013 3:08:15 AM | Location : United States







Related Discussions:- Paradox of identification, Assignment Help, Ask Question on Paradox of identification, Get Answer, Expert's Help, Paradox of identification Discussions

Write discussion on Paradox of identification
Your posts are moderated
Related Questions
Paired Prisoners' Dilemma Students can be paired off and instructed to play several ver-sions of a particular game with a prisoners' dilemma structure.Provide each pair with a

Rollback equilibrium       (b) In the rollback equilibrium, A and B vote For while C and D vote Against; this leads to payoffs of (3, 4, 3, 4). The complete equil

A priori knowledge usually enables us to decide that some coefficients must be zero in the particular equation, while they assume non-zero values in other equations of the system.

Borel was maybe the primary to outline the notion of games of strategy. He printed many papers on poker, incorporating themes of imperfect data and credibility. Whereas his writing

(a) A player wins if she takes the total to 100 and additions of any value from 1 through 10 are allowed. Thus, if you take the sum to 89, you are guaran- teed to win; your oppone

Consider the Cournot duopoly model in which two rms, 1 and 2, simultaneously choose the quantities they will sell in the market, q 1 and q 2 . The price each receives for each uni

if the first three words are "the boy''s down" what are the last three words?

I have an assignment in which I have to invent a new international trade theory. For me, the absolute advantage of Adam Smith is really good, and I want to find a solution if a cou

Exercise 1 a) Pure strategy nash equilibrium in this case is Not Buy, bad ( 0,0) as no one wants to deviate from this strategy. b) The player chooses buy in the first perio

In many cases we are interested in only one (or a few) of the equations of the model and attempts to measure its parameters statistically without a complete knowledge of the entire