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HAAVELMO’S CONTRIBUTIONS TO SIMULTANEOUS-EQUATIONS ESTIMATION

Published online by Cambridge University Press:  31 July 2014

John S. Chipman
John S. Chipman*
Affiliation:
University of Minnesota
*
*Address correspondence to John S. Chipman, University of Minnesota, Minneapolis, MN 55455; e-mail: [email protected].
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Abstract

This paper surveys Trygve Haavelmo’s contributions to econometrics. A brief summary of his 1944 monograph is followed by an analysis of the six important papers he contributed during 1943–47. Four of them were devoted to macroeconomic models including estimation of the Keynesian marginal propensity to consume; the first two introduced the methodology of a system of structural equations; the third marked a milestone in econometric method by deriving the reduced form of such a system; and the fourth analyzed the contrast between time-series and cross-section analysis. The fifth (joint with M.A. Girshick) on the demand for food provided a definitive treatment of estimation of demand and supply functions; it carried out the execution of a five-equation structural model of the U.S. economy. The sixth was an interesting policy model of the interrelationship between the agricultural and the rural sector of the economy, which was fitted to U.S. data and addressed to questions of policy.

Type
ARTICLES
Information
Econometric Theory , Volume 31 , Issue 2: Haavelmo Memorial Issue: Part Two , April 2015 , pp. 233 - 248
Copyright
Copyright © Cambridge University Press 2014 

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