ABSTRACT

Systems of interdependent simultaneous equations have been used extensively to describe social behavior in the field of economics or, more specifically, in econometrics. A system of equations in the social sciences is usually considered a nonexperimental model, that is, a model for which data came from a nonexperimental setting such as time-series or cross-sectional studies. Two problems that arise when using a system of simultaneous equations in a nonexperimental setting are (1) identification and (2) estimation. The problem of identification has been given extensive treatment in the econometric literature and has recently been introduced into the literature of sociology by Blalock [5] and Boudon [6].